The CGST ACT 2017- Ghanshyam Upadhyay Bare Act GST GOODS AND SERVICE TAX THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (Act NO. 12 of 2017) (As amended by the Act No. 31 of 2018, w.e.f.01-02-2019 ) Compiled By Ghanshyam Upadhyay, B.Com., P.G.D.T. GST Practitioner Email: - [email protected] BRAHMANI LAW HOUSE HYDERABAD DISCLAIMER: www.taxguru.in
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
The CGST ACT 2017- Ghanshyam Upadhyay
Bare Act
GST
GOODS AND
SERVICE TAX THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
(Act NO. 12 of 2017)
(As amended by the Act No. 31 of 2018, w.e.f.01-02-2019 )
Compiled By
Ghanshyam Upadhyay, B.Com., P.G.D.T.
GST Practitioner
Email: - [email protected]
BRAHMANI LAW HOUSE
HYDERABAD
DISCLAIMER:
www.taxguru.in
Due care has been taken while editing and printing this book/e-book. Neither the compilers nor
the publisher of the book/e-book hold any responsibility for any mistake that may have inadvertently
crept in. The publisher has taken all care and effort to ensure that the legislatives provisions
reproduced here are accurate and up to date. However, the publisher and the compilers of this
book/e-book takes no responsibility for any inaccuracy or omission contained herein for advice,
action or inaction based hereupon. Reference must be made to the Official Gazette issued. The publisher
shall not be liable for any direct consequential or incidental damages arising out of the use of this book/e-
book. In case of binding mistake, misprints or missing pages etc., the publisher's entire
liability and your exclusive remedy, is replacement of this books within 15 days after issuing the
Bill of purchase by similar edition/reprint of the book/e-book
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
Contents
CHAPTER I
PRELIMINARY
Sec.1. Short title extent and commencement.
Sec. 2. Definitions: -In this Act, unless the context otherwise requires, ––
(1) “actionable claim”
(2) “address of delivery”
(3) “address on record”
(4) “adjudicating authority”
(5) “agent”
(6) “aggregate turnover”
(7) “agriculturist”
(8) “Appellate Authority”
(9) “Appellate Tribunal”
(10) “appointed day”
(11) “assessment”
(12) “associated enterprises”
(13) “audit”
(14) “authorised bank”
(15) “authorised representative”
(16) “Board”
(17) “business”
(19) “capital goods”
(20) “casual taxable person”
(21) “central tax”
www.taxguru.in
(22) “cess”
(23) “chartered accountant”
(24) “Commissioner”
(25) “Commissioner in the Board”
(26) “common portal”
(27) “common working days”
(28) “company secretary”
(29) “competent authority”
(30) “composite supply”
(31) “consideration”
(32) “continuous supply of goods”
(33) “continuous supply of services”
(34) “conveyance”
(35) “cost accountant”
(36) “Council”
(37) “credit note”
(38) “debit note”
(39) “deemed exports”
(40) “designated authority”
(41) “document”
(42) “drawback”
(43) “electronic cash ledger”
(44) “electronic commerce”
(45) “electronic commerce operator”
(46) “electronic credit ledger”
(47) “exempt supply”
(48) “existing law”
(49) “family”
(50) “fixed establishment”
(51) “Fund”
(52) “goods”
(53) “Government”
(54) “Goods and Services Tax (Compensation to States) Act”
(55) “goods and services tax practitioner”
(56) “India”
(57) “Integrated Goods and Services Tax Act”
(58) “integrated tax”
(59) “input”
(60) “input service”
(61) “Input Service Distributor”
(62) “input tax”
(63) “input tax credit”
(64) “intra-State supply of goods”
(65) “intra-State supply of services”
(66) “invoice” or “tax invoice”
(67) “inward supply”
www.taxguru.in
(68) “job work”
(69) “local authority”
(a) a “Panchayat”
(b) a “Municipality”
(c) a Municipal Committee, a Zilla Parishad, a District Board, and any other
authority legally entitled to, or entrusted by the Central Government or any State
Government with the control or management of a municipal or local fund;
(d) a Cantonment Board
(e) a Regional Council or a District Council
(f) a Development Board
(g) a Regional Council constituted under article 371A of the Constitution;
(70) “location of the recipient of services”
(71) “location of the supplier of services”
(72) “manufacture”
(73) “market value”
(74) “mixed supply”
(75) “money”
(76) “motor vehicle”
(77) “non-resident taxable person”
(78) “non-taxable supply”
(79) “non-taxable territory”
(80) “notification”
(81) “other territory”
(82) “output tax”
(83) “outward supply”
(84) “person”
(85) “place of business”
(86) “place of supply”
(87) “prescribed”
(88) “principal”
(89) “principal place of business”
(90) “principal supply”
(91) “proper officer”
(92) “quarter”
(93) “recipient”
(94) “registered person”
(95) “regulations”
(96) “removal’’
(97) “return”
(98) “reverse charge”
www.taxguru.in
(99) “Revisional Authority”
(100) “Schedule”
(101) “securities”
(102) “services”
(103) “State”
(104) “State tax”
(105) “supplier”
(106) “tax period”
(107) “taxable person”
(108) “taxable supply”
(109) “taxable territory”
(110) “telecommunication service”
(111) “the State Goods and Services Tax Act”
(112) “turnover in State” or “turnover in Union territory”
(113) “usual place of residence”
(114) “Union territory”
(115) “Union territory tax”
(116) “Union Territory Goods and Services Tax Act”
(117) “valid return”
(118) “voucher”
(119) “works contract”
(120) words and expressions
(121) any reference in this Act to a law
CHAPTER II
ADMINISTRATION
Sec.3. Officers under this Act.
Sec.4. Appointment of officers.
Sec-5. Powers of officers.
Sec.6. Authorisation of officers of State tax or Union territory tax as proper officer in certain
circumstance.
CHAPTER III
LEVY AND COLLECTION OF TAX
Sec.7. Scope of Supply.
Sec.8. Tax liability on composite and mixed supplies.
Sec.9. Levy and collection.
Sec.10. Composition levy.
Sec.11. Power to grant exemption from tax.
CHAPTER IV
www.taxguru.in
TIME AND VALUE OF SUPPLY
Sec.12.Time of supply of goods.
Sec.13. Time of supply of service.
Sec.14. Change in rate of tax in respect of supply of goods or service.
Sec.15. Value of taxable supply.
CHAPTER V
INPUT TAX CREDIT
Sec.16. Eligibility and conditions for taking input tax credit.
Sec.17. Appointment of credit and blocked credits.
Sec.18. Availability of credit in special circumstances.
Sec.19. Taking input tax credit in respect of inputs and capital goods sent for job work.
Sec.20. Manner of distribution of credit by Input Service Distributor.
Sec.21. Manner of Recovery of credit distributed in excess.
CHAPTER VI
REGISTRATION
Sec.22. Persons liable for registration.
Sec.23. Persons of liable for registration.
Sec.24. Compulsory registration in certain cases.
Sec.25. Procedure for registration.
Sec.26. Deemed registration.
Sec.27. Special provisions relating to casual taxable person and non-resident taxable person.
Sec.28. Amendment of registration.
Sec.29. Cancellation or suspension of Registration.
Sec.30. Revocation of cancellation of registration.
CHAPTER VII
TAX INVOICE, CREDIT AND DEBIT NOTES
Sec.31. Tax invoice.
Sec.32. Prohibition of unauthorized collection of tax.
Sec.33. Amount of tax to be indicated in tax invoice and other documents.
Sec.34. Credit and Debit notes.
CHAPTER VIII
ACCOUNTS AND RECORDS
Sec.35. Accounts and other records.
Sec.36. Period of retention of accounts.
CHAPTER IX
RETURNS
www.taxguru.in
Sec.37. Furnishing details of outwards supplies.
Sec.38. Furnishing details of inward supplies.
Sec.39. Furnishing of returns.
Sec.40. First return.
Sec.41. Claim of input tax credit and provisional acceptance thereof.
Sec.42. Matching, reversal and reclaim of input tax credit.
Sec.43. Matching reversal and reclaim of reduction in output tax liability.
Sec.43A. Procedure for furnishing return and availing input tax credit.
Sec.44. Annual return.
Sec.45. Final return.
Sec.46. Notice to return defaulters.
Sec.47. Levy of late fee.
Sec.48. Goods and service tax practitioners.
CHAPTER X
PAYMENT OF TAX
Sec.49. Payment of tax, Interest, penalty and other amounts.
Sec.49A. Utilisation of input tax credit subject to certain conditions.
49B. Order of utilisation of input tax credit.
Sec.50. Interest on delayed payment of tax.
Sec.51. Tax deduction at source.
Sec.52. Collection of tax at source.
Sec.53. Transfer of input tax credit.
CHAPTER XI
REFUNDS
55[Sec.54. Refund of tax.
Sec.55. Refund in certain cases.
Sec.56. Interest on delayed refunds.
Sec.57. Consumer Welfare Fund.
Sec.58. Utilisation of Funds.
CHAPTER XII
ASSESSMENT
60[Sec.59. Self-assessment.
Sec.60. Provisional Assessment.
Sec.61. Security of returns.
Sec.62. Assessment of non-filers of returns.
Sec.63. Assessment of unregistered persons.
Sec.64. Summery assessment in certain special cases.
www.taxguru.in
CHAPTER XIII
AUDIT
Sec.65. Audit by tax authorities.
Sec.66. Special Audit.
CHAPTER XIV
INSPECTION, SEARCH, SEIZURE AND ARREST
Sec.67. Power of inspection search and seizure.
Sec.68. Inspection of goods in movement.
Sec.69. Power to arrest.
Sec.70. Power to summon persons to give evidence and produce documents.
Sec.71. Access to business premises.
Sec.72.Officers to assist proper officers.
CHAPTER XV
DEMANDS AND RECOVERY
74[Sec.73. Determination of tax not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement
or suppression of facts.
Sec.74. Determinationof tax not paid or short paid or erroneously refunded or input tax credit
wrongly availed or utilised by reason of fraud or anywillful-misstatement or suppression of facts. Sec.75. General provisions relating to determination of tax.
Sec.76. Tax collected but not paid to Government.
Sec.77. Tax wrongfully collected and paid to Central Government or State Government. Sec.78. Initiation of recovery proceedings.
Sec.79. Recovery of tax.
Sec.80. Payment of tax and other amount in instalments.
Sec.81.Transfer of property to be void in certain cases.
Sec.82. Tax to be first charge on property.
Sec.83. Provisional attachment to protect revenue in certain cases.
Sec.84. Continuation and validation of certain recovery proceedings.
CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
Sec.85. Liability in case of transfer of business.
Sec.86. Liability of agent and principal.
Sec.88. Liability in case of company in liquidation.
Sec.89. Liability of directors of private company.
Sec.90. Liability of partners of firm to pay tax.
www.taxguru.in
Sec.91. Liability of guardians, trustees, etc.
Sec.92. Liability of Court of Wards, etc.
Sec.93. Special provisions regarding liability to pay tax, interest or penalty in certain cases.
Sec.94. Liability in other cases.
CHAPTER XVII
ADVANCE RULING
96[Sec.95. Definitions.
(a) “advance ruling”
(b) “Appellate Authority”
(c) “applicant”
(d) “application”
(e) “Authority”
Sec.96. Authority for advance ruling.
Sec.97. Application for advance ruling.
Sec.98. Procedure on receipt of application.
Sec.99. Appellate Authority for Advance Ruling.
Sec.100. Appeal to Appellate Authority.
Sec.101. Orders of Appellate Authority.
Sec.102. Rectification of advance ruling.
Sec.103. Applicability of advance ruling.
Sec.104. Advance ruling to be void in certain circumstances.
Sec.105. Powers of Authority and Appellate Authority.
Sec.106. Procedure of Authority and Appellate Authority.
CHAPTER XVIII
APPEALS AND REVISION
Sec.107. Appeals to Appellate Authority.
Sec.108. Powers of Revisional Authority.
Sec.109. Constitution of Appellate Tribunal and Benches thereof.
Sec.110. President and Members of Appellate Tribunal, their qualification, appointment, conditions
of service, etc.
Sec.111. Procedure before Appellate Tribunal.
Sec.112. Appeals to Appellate Tribunal.
Sec.113. Orders of Appellate Tribunal.
Sec.114. Financial and administrative powers of President.
Sec.115. Interest on refund of amount paid for admission of appeal.
Sec.116. Appearance by authorised representative.
Sec.117. Appeal to High Court.
Sec.118. Appeal to Supreme Court.
Sec.119. Sums due to be paid notwithstanding appeal, etc.
Sec.120. Appeal not to be filed in certain cases.
www.taxguru.in
Sec.121. Non-appealable decisions and orders.
CHAPTER XIX
OFFENCES AND PENALTIES
Sec.122. Penalty for certain offences.
Sec.123. Penalty for failure to furnish information return.
Sec.124. Fine for failure to furnish statistics.
Sec.125. General penalty.
Sec.126. General disciplines related to penalty.
Sec.127. Power to impose penalty in certain cases.
Sec.128. Power to waive penalty or fee or both.
Sec.129. Detention seizure and release of goods and conveyances in transit.
Sec.130. Confiscation of goods or conveyances and levy of penalty.
Sec.131. Confiscation or penalty not to interfere with other punishments.
Sec.132. Punishment for certain offences.
Sec.133. Liability of officers and certain other persons.
Sec.134. Cognizance of offences.
Sec.135. Presumption of culpable mental state.
Sec.136. Relevancy of statements under certain circumstances.
Sec.137. Offences by companies.
Sec.138. Compounding of offences.
CHAPTER XX
TRANSITIONAL PROVISIONS
Sec.139. Migration of existing taxpayers
Sec.140. Transitional arrangements for input tax credit
Sec.141. Transitional provisions relating to job work
Sec.142. Miscellaneous transitional provisions.
CHAPTER XXI
MISCELLANEOUS
Sec.143. Job work procedure
Sec.144. Presumption as to documents in certain cases
Sec.145. Admissibility of micro films, facsimile copies of documents and computer printouts
as documents and as evidence
Sec.146. Common portal
Sec.147. Deemed exports
Sec.148. Special procedure for certain process
Sec.149. Goods and services tax compliance rating
www.taxguru.in
Sec.150. Obligation to furnish information return
Sec.151. Power to collect statistics.
Sec.152. Bar on disclosure of information.
Sec.153. Taking assistance from an export.
Sec.154. Power to take sample.
Sec.155. Burdon of proof.
Sec.156. Persons deemed to be public servants.
Sec.157. Protection of action taken under this Act.
Sec.158. Disclosure of information by a public servant.
Sec.159. Publication of information in respect of persons in certain cases.
Sec.160. Assessment proceedings etc., not to be invalid on certain grounds.
Sec.161. Rectification of errors apparent on the face of record.
Sec.162. Bar on jurisdiction of civil courts.
Sec.163. Levy of fee.
Sec.164. Power of Government to make rules.
Sec.165. Power to make regulations.
Sec.166. Laying of rules, regulations and notifications.
Sec.167. Delegation of powers.
Sec.168. Power to issue instructions or directions.
Sec.169. Service of notice in certain circumstances.
Sec.170. Rounding off of tax.
Sec.171. Anti Profiteering measure.
Sec.172.Removal of difficulties.
Sec.173. Amendment of Act 32 of 1994.
Sec.174. Repeal and saving.
SCHEDULE - I
SCHEDULE II
SCHEDULE III
www.taxguru.in
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
( Act NO. 12 of 2017 Dt. 12-04-2017 )
( As amended by the CGST (Amendment) Act, 2018 ( No.31 of 2018 ), Dt.30.08.2018. )
An Act to make a provision for levy and collection of tax on intra-State supply of
goods or services or both by the Central Government and for matters
connected therewith or incidental thereto.
BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows: —
CHAPTER I
PRELIMINARY
1[Sec.1. Short title extent and commencement.
(1) This Act may be called the Central Goods and Services Tax Act, 2017.
(2) It extends to the whole of India 2[xxx]
(3) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any
reference in any such provision to the commencement of this Act shall be construed as a reference
to the coming into force of that provision.
1.Sec. 1 came into force on22-06-2017, vide N. No.1/2017-CT, dt.19.06.2017
2.The words “except the State of Jammu and Kashmir” omitted by the CGST (Extension to J & K) Act,2017
(No.26 of 2017) Dt. 23-08-2017, w.e.f.08-07-2017.
3[ Sec. 2. Definitions: -In this Act, unless the context otherwise requires, ––
3.Sec. 2 came into force on 22-06-2017, vide N. No. 1/2017-CT, dt.19.06.2017
(2) “actionable claim” shall have the same meaning as assigned to it in section 3 of the
Transfer of Property Act, 1882;(4 of 1882)
www.taxguru.in
(2) “address of delivery” means the address of the recipient of goods or services or both
indicated on the tax invoice issued by a registered person for delivery of such goods or
services or both;
(3) “address on record” means the address of the recipient as available in the records of
the supplier;
(4) “adjudicating authority” means any authority, appointed or authorised to pass any
order or decision under this Act, but does not include the 3a[ Central Board of Indirect
Taxes and Customs], the Revisional Authority, the Authority for Advance Ruling, the
Appellate Authority for Advance Ruling, 3b[ the Appellate Authority, the Appellate
Tribunal and the Authority referred to in sub-section (2) of section 171 ];
3a.Subs. for the words “Central Board of Excise and Customs” by the CGST (Amendment) Act, 2018, (No.31 of 2018),
Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019 3b. Subs. for the words “the Appellate Authority and the Appellate Tribunal” by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018 w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(5) “agent” means a person, including a factor, broker, commission agent, arhatia,del
credere agent, an auctioneer or any other mercantile agent, by whatever namecalled, who carries
on the business of supply or receipt of goods or services or both on behalf of another;
(6) “aggregate turnover” means the aggregate value of all taxable supplies (excluding the
value of inward supplies on which tax is payable by a person on reverse charge basis), exempt
supplies, exports of goods or services or both and inter-State supplies of persons having the same
Permanent Account Number, to be computed on all India basis but excludes central tax, State tax,
Union territory tax, integrated tax and cess ;
(7) “agriculturist” means an individual or a Hindu Undivided Family who undertakes
cultivation of land—
(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by hired labour under personal
supervision or the personal supervision of any member of the family;
(8) “Appellate Authority” means an authority appointed or authorised to hear appeals as
referred to in section 107;
(9) “Appellate Tribunal” means the Goods and Services Tax Appellate Tribunal
constituted under section 109;
(10) “appointed day” means the date on which the provisions of this Act shall come into
force;
www.taxguru.in
(11) “assessment” means determination of tax liability under this Act and includes self-
assessment, re-assessment, provisional assessment, summary assessment and best
judgment assessment;
(12) “associated enterprises” shall have the same meaning as assigned to it in section 92A
of the Income-tax Act, 1961;(43 of 1961)
(13) “audit” means the examination of records, returns and other documents maintained
or furnished by the registered person under this Act or the rules made thereunder or under
any other law for the time being in force to verify the correctness of turnover declared,
taxes paid, refund claimed and input tax credit availed, and to assess his compliance with
the provisions of this Act or the rules made thereunder;
(14) “authorised bank” shall mean a bank or a branch of a bank authorized by the
Government to collect the tax or any other amount payable under this Act;
(15) “authorised representative” means the representative as referred to in section 116;
(16) “Board” means the Central Board of Excise and Customs constituted under the
Central Boards of Revenue Act, 1963(54 of 1963.);
3c [(17) “business” includes ––
(a) any trade, commerce, manufacture, profession, vocation, adventure,
wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-
clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there
is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in
connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or
any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted
by him in the course or furtherance of his trade, profession or vocation;
3d [ (h) activities of a race club including by way of totalisator or a license to book
maker or activities of a licensed book maker in such club; and;]
www.taxguru.in
(i) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public authorities;
3d.Subs.for the sub-clause “(h) services provided by a race club by way of totalisator or a licence to book maker in such
club; and” by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018,. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
3e [(18) XXXX]
3e. Omitted the clause“ (18) “business vertical” means a distinguishable component of an enterprise that is engaged in the supply
of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals.
Explanation .– For the purposes of this clause, factors that should be consideredin determining whether goods or services are related include––
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services; and (e) the nature of regulatory environment (wherever applicable), includingbanking, insurance, or public utilities;”by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(19) “capital goods” means goods, the value of which is capitalised in the books of account
of the person claiming the input tax credit and which are used or intended to be used in the
course or furtherance of business;
(20) “casual taxable person” means a person who occasionally under takes transactions
involving supply of goods or services or both in the course or furtherance of business,
whether as principal, agent or in any other capacity, in a State or a Union territory where
he has no fixed place of business;
(21) “central tax” means the central goods and services tax levied under section 9;
(22) “cess” shall have the same meaning as assigned to it in the Goods and Services Tax
(Compensation to States) Act;
(23) “chartered accountant” means a chartered accountant as defined in clause (b)
of sub-section (1) of section 2 of the Chartered Accountants Act, 1949(38 of 1949);
(24) “Commissioner” means the Commissioner of central tax and includes the Principal
Commissioner of central tax appointed under section 3 and the Commissioner of integrated
tax appointed under the Integrated Goods and ServicesTax Act;
(25) “Commissioner in the Board” means the Commissioner referred to in section 168;
(26) “common portal” means the common goods and services tax electronic portal
referred to in section 146;
www.taxguru.in
(27) “common working days” in respect of a State or Union territory shall mean such
days in succession which are not declared as gazetted holidays by the Central Government
or the concerned State or Union territory Government;
(28) “company secretary” means a company secretary as defined in clause
(c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980);
(29) “competent authority” means such authority as may be notified by the Government;
(30) “composite supply” means a supply made by a taxable person to a recipient
consisting of two or more taxable supplies of goods or services or both, or any combination
thereof, which are naturally bundled and supplied in conjunction with each other in the
ordinary course of business, one of which is a principal supply;
Illustration. -- Where goods are packed and transported with insurance, the supply
of goods, packing materials, transport and insurance is a composite supply and supply of
goods is a principal supply;
(31) “consideration” in relation to the supply of goods or services or both includes–
(a) any payment made or to be made, whether in money or otherwise, inrespect of,
in response to, or for the inducement of, the supply of goods or services or both,
whether by the recipient or by any other person but shall not include any subsidy
given by the Central Government or a State Government;
(b) the monetary value of any act or forbearance, in respect of, in response to, or
for the inducement of, the supply of goods or services orboth, whether by the
recipient or by any other person but shall not include any subsidy given by the
Central Government or a State Government:
Provided that a deposit given in respect of the supply of goods or services
or both shall not be considered as payment made for such supply unless the supplier
applies such deposit as consideration for the said supply;
(32) “continuous supply of goods” means a supply of goods which isprovided, or agreed
to be provided, continuously or on recurrent basis, under acontract, whether or not by
means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the
recipient on a regular or periodic basis and includes supply of such goods as the
Government may, subject to such conditions, as it may, by notification, specify;
(33) “continuous supply of services” means a supply of services which is provided, or
agreed to be provided, continuously or on recurrent basis, under a contract, for a period
exceeding three months with periodic payment obligations and includes supply of such
www.taxguru.in
services as the Government may, subject to such conditions, as it may, by notification,
specify;
(34) “conveyance” includes a vessel, an aircraft and a vehicle;
(35) “cost accountant” means a cost accountant as defined in 3f [ clause (b) ] of sub-section
(1) of section 2 of the Cost and Works Accountants Act, 1959 ( 23 of 1959) ;
3f.Subs.for the word, brackets and letter “clause (c)” by the CGST (Amendment) Act, 2018, (No.31
of 2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(36) “Council” means the Goods and Services Tax Council established under article 279A
of the Constitution;
(37) “credit note” means a document issued by a registered person under sub-section (1)
of section 34;
(38) “debit note” means a document issued by a registered person under sub-section (3)
of section 34;
(39) “deemed exports” means such supplies of goods as may be notified under section
147;
(40) “designated authority” means such authority as may be notified by the Board;
(41) “document” includes written or printed record of any sort and electronic record as
defined in clause (t) of section 2 of the Information Technology Act, 2000 (21 of 2000) ;
(42) “drawback” in relation to any goods manufactured in India and exported, means the
rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or
input services used in the manufacture of such goods;
(43) “electronic cash ledger” means the electronic cash ledger referred to in sub-
section(1) of section 49;
(44) “electronic commerce” means the supply of goods or services or both, including
digital products over digital or electronic network;
(45) “electronic commerce operator” means any person who owns, operates or manages
digital or electronic facility or platform for electronic commerce;
(46) “electronic credit ledger” means the electronic credit ledger referred to in sub-
section (2) of section 49;
(47) “exempt supply” means supply of any goods or services or both which attracts nil
rate of tax or which may be wholly exempt from tax under section 11, or under section 6
of the Integrated Goods and Services Tax Act, and includes non-taxable supply;
www.taxguru.in
(48) “existing law” means any law, notification, order, rule or regulation relating to levy
and collection of duty or tax on goods or services or both passed or made before the
commencement of this Act by Parliament or any Authority or person having the power to
make such law, notification, order, rule or regulation;
(49) “family” means, –
(i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the person if they are
wholly or mainly dependent on the said person;
(50) “fixed establishment” means a place (other than the registered place of business)
which is characterised by a sufficient degree of permanence and suitable structure in terms
of human and technical resources to supply services, or to receive and use services for its
own needs;
(51) “Fund” means the Consumer Welfare Fund established under section 57;
(52) “goods” means every kind of movable property other than money and securities but
includes actionable claim, growing crops, grass and things attached toor forming part of
the land which are agreed to be severed before supply or under a contract of supply;
(53) “Government” means the Central Government;
(54) “Goods and Services Tax (Compensation to States) Act” means the Goods and
Services Tax (Compensation to States) Act, 2017;
(55) “goods and services tax practitioner” means any person who has been approved
under section 48 to act as such practitioner;
(56) “India” means the territory of India as referred to in article 1 of the Constitution, its
territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive
economic zone or any other maritime zone as referred to in the Territorial Waters,
Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 ( 80 of
1976 ), and the air space above its territory and territorial waters;
(57) “Integrated Goods and Services Tax Act” means the Integrated Goods and Services
Tax Act, 2017;
(58) “integrated tax” means the integrated goods and services tax levied under the
Integrated Goods and Services Tax Act;
(59) “input” means any goods other than capital goods used or intended to be used by a
supplier in the course or furtherance of business;
www.taxguru.in
(60) “input service” means any service used or intended to be used by a supplier in the
course or furtherance of business;
(61) “Input Service Distributor” means an office of the supplier of goods or services or
both which receives tax invoices issued under section 31 towards the receipt of input
service and issues a prescribed document for the purposes of distributing the credit of
central tax, State tax, integrated tax or Union territory tax paid on the said services to a
supplier of taxable goods or services or both having the same Permanent Account Number
as that of the said office;
(62) “input tax” in relation to a registered person, means the central tax, State tax,
integrated tax or Union territory tax charged on any supply of goods or services or both
made to him and includes—
(a) the integrated goods and services tax charged on import of goods;
(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9;
(c) the tax payable under the provisions of sub-sections (3) and (4) of
section 5 of the Integrated Goods and Services Tax Act;
(d) the tax payable under the provisions of sub-sections (3) and (4) of
section 9 of the respective State Goods and Services Tax Act; or
(e) the tax payable under the provisions of sub-sections (3) and (4) of
section 7 of the Union Territory Goods and Services Tax Act,
but does not include the tax paid under the composition levy;
(63) “input tax credit” means the credit of input tax;
(64) “intra-State supply of goods” shall have the same meaning as assigned to
it in section 8 of the Integrated Goods and Services Tax Act;
(65) “intra-State supply of services” shall have the same meaning as assigned to it in
section 8 of the Integrated Goods and Services Tax Act;
(66) “invoice” or “tax invoice” means the tax invoice referred to in section 31;
(67) “inward supply” in relation to a person, shall mean receipt of goods or services or
both whether by purchase, acquisition or any other means with or without consideration;
(68) “job work” means any treatment or process undertaken by a person on goods
belonging to another registered person and the expression “job worker” shall be construed
accordingly;
www.taxguru.in
(69) “local authority” means––
(a) a “Panchayat” as defined in clause (d) of article 243 of the Constitution;
(b) a “Municipality” as defined in clause (e) of article 243P of the Constitution;
(c) a Municipal Committee, a Zilla Parishad, a District Board, and any other
authority legally entitled to, or entrusted by the Central Government or any State
Government with the control or management of a municipal or local fund;
(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41
of 2006);
(e) a Regional Council or a District Council constituted under the Sixth Schedule
to the Constitution;
(f) a Development Board constituted under article 3713g [ and article 371J ] of the
Constitution;or
3g. Inserted the words, figures and letter by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( C T ) , Dt. 29-01-2019
(g) a Regional Council constituted under article 371A of the Constitution;
(70) “location of the recipient of services” means, —
(a) where a supply is received at a place of business for which the registration has
been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business for which
registration has been obtained (a fixed establishment elsewhere), the location of
such fixed establishment;
(c) where a supply is received at more than one establishment, whether the place of
business or fixed establishment, the location of the establishment most directly
concerned with the receipt of the supply; and
(d) in absence of such places, the location of the usual place of residence of the
recipient;
(71) “location of the supplier of services” means, —
(a) where a supply is made from a place of business for which the registration has
been obtained, the location of such place of business;
www.taxguru.in
(b) where a supply is made from a place other than the place of business for which
registration has been obtained (a fixed establishment elsewhere), the location of
such fixed establishment;
(c) where a supply is made from more than one establishment, whether the place of
business or fixed establishment, the location of the establishment most directly
concerned with the provisions of the supply; and
(d) in absence of such places, the location of the usual place of residence of the
supplier;
(72) “manufacture” means processing of raw material or inputs in any manner that results
in emergence of a new product having a distinct name, character and use and the term
“manufacturer” shall be construed accordingly;
(73) “market value” shall mean the full amount which a recipient of a supply is required
to pay in order to obtain the goods or services or both of like kind and quality at or about
the same time and at the same commercial level where the recipient and the supplier are
not related;
(74) “mixed supply” means two or more individual supplies of goods or services, or any
combination thereof, made in conjunction with each other by a taxable person for a single
price where such supply does not constitute a composite supply.
Illustration. - A supply of a package consisting of canned foods, sweets, chocolates,
cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is
a mixed supply. Each of these items can be supplied separately and is not dependent
on any other. It shall not be a mixed supply if these items are supplied separately;
(75) “money” means the Indian legal tender or any foreign currency, cheque, promissory
note, bill of exchange, letter of credit, draft, pay order, traveler cheque, money order, postal
or electronic remittance or any other instrument recognised by the Reserve Bank of India
when used as a consideration to settle an obligation or exchange with Indian legal tender
of another denomination but shall not include any currency that is held for its numismatic
value;
(76) “motor vehicle” shall have the same meaning as assigned to it in clause (28) of section
2 of the Motor Vehicles Act, 1988 (59 of 1988);
(77) “non-resident taxable person” means any person who occasionally undertakes
transactions involving supply of goods or services or both, whether as principal or agent or
in any other capacity, but who has no fixed place of business or residence in India;
(78) “non-taxable supply” means a supply of goods or services or both which is not
leviable to tax under this Act or under the Integrated Goods and Services Tax Act;
www.taxguru.in
(79) “non-taxable territory” means the territory which is outside the taxable territory;
(80) “notification” means a notification published in the Official Gazette and the
expressions “notify” and “notified” shall be construed accordingly;
(81) “other territory” includes territories other than those comprising in a State and those
referred to in sub-clauses (a) to (e) of clause (114) ;
(82) “output tax” in relation to a taxable person, means the tax chargeable under this Act
on taxable supply of goods or services or both made by him or by his agent but excludes
tax payable by him on reverse charge basis;
(83) “outward supply” in relation to a taxable person, means supply of goods or services
or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any
other mode, made or agreed to be made by such person in the course or furtherance of
business;
(84) “person” includes—
(a) an individual;
(b) a Hindu Undivided Family;
(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
(f) an association of persons or a body of individuals, whether incorporated or not,
in India or outside India;
(g) any corporation established by or under any Central Act, State Act or Provincial
Act or a Government company as defined in clause (45) of section 2 of the
Companies Act, 2013(18 of 2013);
(h) any body corporate incorporated by or under the laws of a country outside India;
(i) a co-operative society registered under any law relating to co-operative societies;
(j) a local authority;
(k) Central Government or a State Government;
(l) society as defined under the Societies Registration Act, 1860;(21 of 1860)
www.taxguru.in
(m) trust; and
(n) every artificial juridical person, not falling within any of the above;
(85) “place of business” includes ––
(a) a place from where the business is ordinarily carried on, and includes a
warehouse, a godown or any other place where a taxable person stores his goods,
supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by
whatever name called;
(86) “place of supply” means the place of supply as referred to in Chapter V of the
Integrated Goods and Services Tax Act;
(87) “prescribed” means prescribed by rules made under this Act on the recommendations
of the Council;
(88) “principal” means a person on whose behalf an agent carries on the business of supply
or receipt of goods or services or both;
(89) “principal place of business” means the place of business specified as theprincipal
place of business in the certificate of registration;
(90) “principal supply” means the supply of goods or services which constitutes the
predominant element of a composite supply and to which any other supply forming part of
that composite supply is ancillary;
(91) “proper officer” in relation to any function to be performed under this Act, means the
Commissioner or the officer of the central tax who is assigned that function by the
Commissioner in the Board;
(92) “quarter” shall mean a period comprising three consecutive calendar months, ending
on the last day of March, June, September and December of a calendar year;
(93) “recipient” of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods or services or both, the
person who is liable to pay that consideration;
www.taxguru.in
(b) where no consideration is payable for the supply of goods, the person to whom
the goods are delivered or made available, or to whom possession or use of the
goods is given or made available; and
(b) where no consideration is payable for the supply of a service, the person to
whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a
reference to the recipient of the supply and shall include an agent acting as such on
behalf of the recipient in relation to the goods or services or both supplied;
(94) “registered person” means a person who is registered under section 25 but does not
include a person having a Unique Identity Number;
(95) “regulations” means the regulations made by the Board under this Act on the
recommendations of the Council;
(96) “removal’’ in relation to goods, means—
(a) despatch of the goods for delivery by the supplier thereof or by any other person
acting on behalf of such supplier; or
(b) collection of the goods by the recipient thereof or by any other person acting on
behalf of such recipient;
(97) “return” means any return prescribed or otherwise required to be furnished by or under
this Act or the rules made thereunder;
(98) “reverse charge” means the liability to pay tax by the recipient of supply of goods or
services or both instead of the supplier of such goods or services or both under sub-section
(3) or sub-section (4) of section 9, or under sub-section (3) or sub-section(4) of section 5
of the Integrated Goods and Services Tax Act;
(99) “Revisional Authority” means an authority appointed or authorized for revision of
decision or orders as referred to in section 108;
(100) “Schedule” means a Schedule appended to this Act;
(101) “securities” shall have the same meaning as assigned to it in clause (h) ofsection 2
of the Securities Contracts (Regulation) Act, 1956;(42 of 1956)
(102) “services” means anything other than goods, money and securities but includes
activities relating to the use of money or its conversion by cash or by any other mode, from
one form, currency or denomination, to another form, currency or denomination for which
a separate consideration is charged;
www.taxguru.in
3h [ Explanation. - For the removal of doubts, it is hereby clarified that the expression
“services” includes facilitating or arranging transactions in securities]
3h. Inserted the Explanation by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(103) “State” includes a Union territory with Legislature;
(104) “State tax” means the tax levied under any State Goods and Services Tax Act;
(105) “supplier” in relation to any goods or services or both, shall mean the person
supplying the said goods or services or both and shall include an agent acting as such on
behalf of such supplier in relation to the goods or services or both supplied;
(106) “tax period” means the period for which the return is required to be furnished;
(107) “taxable person” means a person who is registered or liable to be registered under
section 22 or section 24;
(108) “taxable supply” means a supply of goods or services or both which is leviable to tax
under this Act;
(109) “taxable territory” means the territory to which the provisions of this Act apply;
(110) “telecommunication service” means service of any description (including electronic
mail, voice mail, data services, audio text services, video text services, radio paging and
cellular mobile telephone services) which is made available to users by means of any
transmission or reception of signs, signals, writing, images and sounds or intelligence of
any nature, by wire, radio, visual or other electromagnetic means;
(111) “the State Goods and Services Tax Act” means the respective State Goods and
Services Tax Act, 2017;
(112) “turnover in State” or “turnover in Union territory” means the aggregate value of all
taxable supplies (excluding the value of inward supplies on which tax is payable by a
person on reverse charge basis) and exempt supplies made within a State or Union territory
by a taxable person, exports of goods or services or both and inter-State supplies of goods
or services or both made from the State or Union territory by the said taxable person but
excludes central tax, State tax, Union territory tax, integrated tax and cess;
(113) “usual place of residence” means––
(a) in case of an individual, the place where he ordinarily resides;
(b) in other cases, the place where the person is incorporated or otherwise
legally constituted;
www.taxguru.in
(114) “Union territory” means the territory of—
(a) the Andaman and Nicobar Islands;
(b) Lakshadweep;
(c) Dadra and Nagar Haveli;
(d) Daman and Diu;
(e) Chandigarh; and
(f) other territory.
Explanation. – For the purposes of this Act, each of the territories specified in sub-clauses
(a) to (f) shall be considered to be a separate Union territory;
(115) “Union territory tax” means the Union territory goods and services tax levied under
the Union Territory Goods and Services Tax Act;
(116) “Union Territory Goods and Services Tax Act” means the Union Territory Goods
and Services Tax Act, 2017;
(117) “valid return” means a return furnished under sub-section (1) of section 39 on which
self-assessed tax has been paid in full;
(118) “voucher” means an instrument where there is an obligation to accept it as
consideration or part consideration for a supply of goods or services or both and where the
goods or services or both to be supplied or the identities of their potential suppliers are
either indicated on the instrument itself or in related documentation, including the terms
and conditions of use of such instrument;
(119) “works contract” means a contract for building, construction, fabrication,
completion, erection, installation, fitting out, improvement, modification, repair,
maintenance, renovation, alteration or commissioning of any immovable property wherein
transfer of property in goods (whether as goods or in some other form) is involved in the
execution of such contract;
(120) words and expressions used and not defined in this Act but defined in the Integrated
Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the
Goods and Services Tax (Compensation to States) Act shall have the same meaning as
assigned to them in those Acts;
www.taxguru.in
(121) any reference in this Act to a law which is not in force in the State of Jammu and
Kashmir, shall, in relation to that State be construed as a reference to the corresponding
law, if any, in force in that State.
CHAPTER II
ADMINISTRATION
4[Sec.3. Officers under this Act.
The Government shall, by notification, appoint the following classes of officers
for the purposes of this Act, namely: ––
(a) Principal Chief Commissioners of Central Tax or Principal Directors General
of Central Tax,
(b) Chief Commissioners of Central Tax or Directors General of Central Tax,
(c) Principal Commissioners of Central Tax or Principal Additional Directors
General of Central Tax,
(d) Commissioners of Central Tax or Additional Directors General of Central Tax,
(e) Additional Commissioners of Central Tax or Additional Directors of Central
Tax,
(f) Joint Commissioners of Central Tax or Joint Directors of Central Tax,
(g) Deputy Commissioners of Central Tax or Deputy Directors of Central Tax,
(h) Assistant Commissioners of Central Tax or Assistant Directors of Central Tax,
and
(i) any other class of officers as it may deem fit:
Provided that the officers appointed under the Central Excise Act, 1944
shall be deemed to be the officers appointed under the provisions of this Act.
4.Sec.3 came into force on 22-06-2017, vide Noti.No.1/2017-CT, dt.19-06-2017.
5[Sec.4. Appointment of officers.
www.taxguru.in
(1) The Board may, in addition to the officers as may be notified by the Government
of officer under section 3, appoint such persons as it may think fit to be the officers under this Act.
(2) Without prejudice to the provisions of sub-section (1), the Board may, by order, authorise any officer
referred to in clauses (a) to (h) of section 3 to appoint officers of central tax below the rank of Assistant
Commissioner of central tax for the administration of this Act.
5. Sec.came into force on 22.06.2017, vide Noti.No.1/2017-CT, dt.19.06.2017
6[Sec-5. Powers of officers.
(1) Subject to such conditions and limitations as the Board may impose, an officer of central
tax may exercise the powers and discharge the duties conferred or imposed on him under this Act.
(2) An officer of central tax may exercise the powers and discharge the duties
conferred or imposed under this Act on any other officer of central tax who is subordinate
to him.
(3) The Commissioner may, subject to such conditions and limitations as may be
specified in this behalf by him, delegate his powers to any other officer who is subordinate
to him.
(4) Notwithstanding anything contained in this section, an Appellate Authority shall
not exercise the powers and discharge the duties conferred or imposed on any other officer of
central tax.
6.Sec.5 came into force on 22.06.2017, vide Noti.No.1/2017-CT, dt.19.06.2017.
7[ Sec.6. Authorisation of officers of State tax or Union territory tax as proper officer in
certain circumstance. (1) Without prejudice to the provisions of this Act, the officers appointed under the
State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are
authorised to be the proper officers for the purposes of this Act, subject to such conditions as
the Government shall, on the recommendations of the Council, by notification, specify.
(2) Subject to the conditions specified in the notification issued under sub-section (1), ––
(a) where any proper officer issues an order under this Act, he shall also
issue an order under the State Goods and Services Tax Act or the Union Territory
Goods and Services Tax Act, as authorised by the State Goods and Services Tax
Act or the UnionTerritory Goods and Services Tax Act, as the case may be, under
intimation to the jurisdictional officer of State tax or Union territory tax;
(b) where a proper officer under the State Goods and Services Tax Act or
the Union Territory Goods and Services Tax Act has initiated any proceedings on
www.taxguru.in
a subject matter, no proceedings shall be initiated by the proper officer under this
Act on the same subject matter.
(3) Any proceedings for rectification, appeal and revision, wherever applicable, of
any order passed by an officer appointed under this Act shall not lie before an officer
appointed under the State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act.
7.Sec.6 came into force on 01-07-2017, vide Noti.No.9/2017-CT, dt.28-06-2017.
CHAPTER III
LEVY AND COLLECTION OF TAX
8[Sec.7. Scope of Supply.
(1) For the purposes of this Act, the expression “supply” includes––
(a) all forms of supply of goods or services or both such as sale, transfer, barter,
exchange, licence, rental, lease or disposal made or agreed to be made for a consideration
by a person in the course or furtherance of business;
(b) import of services for a consideration whether or not in the course or furtherance
of business8a[and];
(c) the activities specified in Schedule I, made or agreed to be made without a
consideration; 8b[ xxxx ] 8c[(d) xxxx ]
8d[ (1A) Where certain activities or transactions constitute a supply in accordance
with the provisions of sub-section (1), they shall be treated either as supply of goods or
supply of services as referred to in Schedule II.]
8.Sec.7 came into force on 01-07-2017, vide Noti.No.9/2017-CT, dt.28-06-2017.
8a. Inserted the word by the CGST(Amendment) Act, 2018, (No.31 of 2018), dt.30.08.2018,
w.e.f. 01-07-2017
8b. Omitted for the word “and” by the CGST (Amendment) Act, 2018, (No.31 of 2018), dt.30.08.2018.w.e.f. 01-07-2017
8c. Omitted the clause “(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.’’ by the
CGST(Amendment) Act, 2018, (No.31 of 2018), dt.30.08.2018. w.e.f. 01-07-2017
8d. Inserted the new sub-section by the CGST (Amendment) Act, 2018, (No.31 of 2018), dt.30.08.2018., w.e.f. 01-07-2017
www.taxguru.in
(2) Notwithstanding anything contained in sub-section (1), ––
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central Government, a State Government or
any local authority in which they are engaged as public authorities, as may be notified by the
Government on the recommendations of the Council,
shall be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of 8e [ sub-sections (1), (1A) and (2)], the Government may,
on the recommendations of the Council, specify, by notification, the transactions that are to be
treated as—
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
8e.Subs. for the words, brackets, figures and letter “sub-sections (1) and (2)” by the CGST(Amendment)
Act, 2018, (No.31 of 2018), dt.30.08.2018., w.e.f. 01-07-2017
9[Sec.8. Tax liability on composite and mixed supplies.
The tax liability on a composite or a mixed supply shall be determined in the following
manner, namely: —
(a) a composite supply comprising two or more supplies, one of which is a principal
supply, shall be treated as a supply of such principal supply; and
(b) a mixed supply comprising two or more supplies shall be treated as a supply of
that particular supply which attracts the highest rate of tax.
9.Sec.8 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
10[Sec.9. Levy and collection.
(1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central
goods and services tax on all intra-State supplies of goods or services or both, excepton the supply
of alcoholic liquor for human consumption, on the value determined under section 15 and at such
rates, not exceeding twenty per cent., as may be notified by on the recommendations of the Council
and collected in such manner as may be prescribed and shall be paid by the taxable person.
(3) The central tax on the supply of petroleum crude, high speed diesel, motor spirit
(commonly known as petrol), natural gas and aviation turbine fuel shall be levied with
www.taxguru.in
effect from such date as may be notified by the Government on the recommendations
of the Council.
(4) The Government may, on the recommendations of the Council, by notification, specify
categories of supply of goods or services or both, the tax on which shall be paid on
reverse charge basis by the recipient of such goods or services or both and all the
provisions of this Act shall apply to such recipient as if he is the person liable for paying
the tax inrelation to the supply of such goods or services or both.
10c[(4) The Government may, on the recommendations of the Council, by notification,
specify a class of registered persons who shall, in respect of supply of specified categories of goods
or services or both received from an unregistered supplier, pay the tax on reverse charge basis as
the recipient of such supply of goods or services or both, and all the provisions of this Act shall
apply to such recipient as if he is the person liable for paying the tax in relation to such supply of
goods or services or both.]
(5) The Government may, on the recommendations of the Council, by notification, specify
categories of services the tax on intra-State supplies of which shall be paid by the electronic
commerce operator if such services are supplied through it, and all the provisions of this Act shall
apply to such electronic commerce operator as if he is the supplier liable for paying the tax in
relation to the supply of such services:
Provided that where an electronic commerce operator does not have a physical presence in
the taxable territory, any person representing such electronic commerce operator for any purpose
in the taxable territory shall be liable to pay tax:
Provided further that where an electronic commerce operator does not have a physical
presence in the taxable territory and also he does not have a representative in the said territory,
such electronic commerce operator shall appoint a person in the taxable territory purpose of paying
tax and such person shall be liable to pay tax.
10.Sec.9 came into force on 22-06-2017, vide N.No.1/2017-CT, dt.28-06-2017.
10c. Subs. For the sub-section “(4) The central tax in respect of the supply of taxable goods or services or both by a
supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”by the CGST(Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
11[Sec.10. Composition levy. 11a[(1) Notwithstanding anything to the contrary contained in this Act but subject provisions
of sub-sections (3) and (4) of section 9, a registered person, whose aggregate turnover in the
preceding financial year did not exceed ***fifty lakh rupee12*, may opt to pay, 11b[in lieu of the
www.taxguru.in
tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate]
as may be prescribed, but not exceeding,––
(a)*[ one per cent. ]12a of the turnover in State or turnover in Union territory in case of
a manufacturer,
(b) two and a half per cent. of the turnover in State or turnover in Union territory in
case of persons engaged in making supplies referred to in clause (b) of paragraph
6 of Schedule II, and
(c.)**[ one per cent. of the turnover]12a in State or turnover in Union territory in case of
other suppliers,
subject to such conditions and restrictions as may be prescribed:
Provided that the Government may, by notification, increase the said limit of fifty lakh
rupees to such higher amount, not exceeding 12c [ one crore and fifty lakh rupees ]****, as may be
recommended by the Council.
12d[ Provided further that a person who opts to pay tax under clause (a) or clause (b) or
clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule
II), of value not exceeding ten percent of turnover in a State or Union territory in the preceding
financial year or five lakh rupees, whichever is higher. ]
11.Sec.10 came into force on 22-06-2017, vide Noti. No.1/2017-CT, dt.19-06-2017.
11a.Order No.01/2017-CT, Dt.13-10-2017. 11b.Subs for the words “in lieu of the tax payable by him, an amount calculated at such rate” the CGST ( Amendment ) Act, 2018, (No.31 of 2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
12*&12a See N.No.8/2017, CT, dt.27-06-2017.
[Note See N.No. 8/2017-Central Tax, Dt.27-06-2017, the Central Government, on the recommendations of the Council, hereby prescribes that an eligible registered person, whose aggregate turnover in the preceding financial year did not exceed ***[ one crore rupees ], may opt to pay, in lieu of the central tax payable by him, an amount calculated at the rate of,––
(i) *[ half per cent] 12a of the turnover in State in case of a manufacturer, (ii) two and a half per cent. Of the turnover in State in case of persons engaged in making
supplies referred to in clause (b) of paragraph 6 of Schedule II of the said Act, and
(iii) **[half per cent of the turnover of taxable supplies of goods] 12a in State in case of other suppliers:
Provided that the aggregate turnover in the preceding financial year shall be ****[ seventy five lakh rupees ] in the case of an eligible registered person, registered under section 25 of the said Act, in any following States, namely: -
(i) Arunachal Pradesh, (ii) Assam, (iii) Manipur, (iv) Meghalaya, (v) Mizoram,
www.taxguru.in
(vi) Nagaland, (vii) Sikkim, (viii) Tripura, (ix) Himachal Pradesh: Provided further that the registered person shall not be eligible to opt for composition levy under sub-section (1) of section 10 of the said Act if such person is a manufacturer of the goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table:-
TABLE
S. No. Tariff item, subheading, heading or Chapter Description (1) (2) (3) 1. 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa. 2. 2106 90 20 Pan masala 3. 24 All goods, i.e. Tobacco and manufactured tobacco substitutes Explanation. – (1) In this Table, “tariff item”, “sub-heading”, “heading” and “chapter” shall mean
respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.]
*[ Subs.For the words “one per cent.”,by the N. No. 1/2018-CT , Dt.01-01-2018 **[ Subs.For the words “half per cent. Of the turnover”, by the N. No. 1/2018-CT , Dt.01-01-2018
***[ Subs.For the words “seventy five lakh rupees”, by the N. No. 46/2017-CT , Dt.13-10-2017
****[ Subs.For the words “fifty lakh rupees”, by the N. No. 46/2017-CT , Dt.13-10-2017
12a.Subs. the words “one per cent.” & “ half per cent. of the turnover” by N.No.1/2018-CT, Dt.01-01-2018.
12b.Subs to the words “seventy five lakh rupee” & “ fifty lakh rupee” by N.No.46/2017-CT, Dt.13-10-2017.
12c. Subs. For the words “one crore rupees” bythe CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019 12d. Inserted the proviso by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(2)The registered person shall be eligible to opt under sub-section (1), if:—
12e[(a) save as provided in sub-section (1), he is not engaged in the supplyof services;]
www.taxguru.in
12e.Subs. for the clause “(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of
paragraph 6 of Schedule II;” bytheCGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
( b )he is not engaged in making any supply of goods which are not leviable to
tax under this Act;
( c) he is not engaged in making any inter-State outward supplies of goods;
(d) he is not engaged in making any supply of goods through an electronic
commerce operator who is required to collect tax at source under section 52; and
(e) he is not a manufacturer of such goods as may be notified by the Government
on the recommendations of the Council:
Provided that where more than one registered persons are having the same Permanent
Account Number (issued under the Income-tax Act, 1961), the registered person shall not be
eligible to opt for the scheme under sub-section (1) unless all such registered persons opt to pay
tax under that sub-section.
(3) The option availed of by a registered person under sub-section (1) shall lapse
with effect from the day on which his aggregate turnover during a financial year
exceeds the limit specified under sub-section (1).
(4) A taxable person to whom the provisions of sub-section (1) apply shall not collect any
tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
(5) If the proper officer has reasons to believe that a taxable person has paid tax under sub-
section (1) despite not being eligible, such person shall, in addition to any tax that may be payable
by him under any other provisions of this Act, be liable to a penalty and the provisions of section
73 or section 74 shall, mutatis mutandis, apply for determination of tax and penalty.
13[Sec.11. Power to grant exemption from tax.
( 1) Where the Government is satisfied that it is necessary in the public interest so to do, it
may, on the recommendations of the Council, by notification, exempt generally, either absolutely
or subject to such conditions as may be specified therein, goods or services or both of any specified
description from the whole or any part of the tax leviable thereon with effect from such date as
may be specified in such notification.
13.Sec.11 came into force on 01-07-2017, vide N.No.9/2017-CT,dt.28-06-2017.
(2) Where the Government is satisfied that it is necessary in the public
interest so to do, it may, on the recommendations of the Council, by special
order in each case, under circumstances of an exceptional nature to be stated
www.taxguru.in
in such order, exempt from payment of tax any goods or services or both on
which tax is leviable.
(3) The Government may, if it considers necessary or expedient so to do for
the purpose of clarifying the scope or applicability of any notification issued
under sub-section (1) or order issued under sub-section (2), insert an
explanation in such notification or order, as the case may be, by notification
at any time within one year of issue of the notification under sub-section (1)
or order under sub-section (2), and every such explanation shall have effect
as if it had always been the part of the first such notification or order, as the
case may be.
Explanation.––For the purposes of this section, where an exemption in respect of any goods
or services or both from the whole or part of the tax leviable thereon has been granted absolutely,
the registered person supplying such goods or services or both shall not collect the tax, in excess
of the effective rate, on such supply of goods or services or both.
CHAPTER IV
TIME AND VALUE OF SUPPLY
14[Sec.12.Time of supply of goods.
(1) The liability to pay tax on goods shall arise at the time of supply, as determined in
accordance with the provisions of this section. 14.Sec.12 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
(2) The time of supply of goods shall be the earlier of the following dates, namely: —
(a) the date of issue of invoice by the supplier or the last date on which he is
required, under 14b[xxxx] section 31, to issue the invoice with respect to the supply; or
14b. Omitted for the words, brackets and figure “sub-section (1) of” by the CGST (Amendment) Act’2018, (No.31 of
2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
.
(b) the date on which the supplier receives the payment with respect to the supply:
Provided that where the supplier of taxable goods receives an amount up to one thousand
rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such
excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of
such excess amount.
Explanation 1. – For the purposes of clauses (a) and (b), “supply” shall be deemed to have
been made to the extent it is covered by the invoice or, as the case may be, the payment.
www.taxguru.in
Explanation 2. – For the purposes of clause (b), “the date on which the supplier receives
the payment” shall be the date on which the payment is entered in his books of account or the date
on which the payment is credited to his bank account, whichever is earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge
basis, the time of supply shall be the earliest of the following dates, namely: —
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the books of account of the recipient or the
date on which the payment is debited in his bank account, whichever is earlier; or
(c) the date immediately following thirty days from the date of issue of invoice or
any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under clause (a) or clause
(b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient
of supply.
(4) In case of supply of vouchers by a supplier, the time of supply shall be—
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
(5) Where it is not possible to determine the time of supply under the provisions of sub-
section (2) or sub-section (3) or sub-section (4), the time of supply shall––
(a) in a case where a periodical return has to be filed, be the date on which such
return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of supply by way of
interest, late fee or penalty for delayed payment of any consideration shall be the date on which
the supplier receives such addition in value.
15[Sec.13. Time of supply of service.
(1) The liability to pay tax on services shall arise at the time of supply, as determined in
accordance with the provisions of this section.
15.Sec.13 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
(2) The time of supply of services shall be the earliest of the following dates, namely: —
www.taxguru.in
(a) the date of issue of invoice by the supplier, if the invoice is issued within the period
prescribed under 15a[xxxx] section 31 or the date of receipt of payment, whichever is earlier;
or
(b) the date of provision of service, if the invoice is not issued within the period prescribed
under 15a[xxxx]section 31 or the date of receipt of payment, whichever is earlier; or
15a. Omitted the words, brackets and figure “sub-section (2) of” by the CGST (Amendment) Act’2018, (No.31 of
2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(c) the date on which the recipient shows the receipt of services in his books of account, in
a case where the provisions of clause (a) or clause (b) do not apply:
Provided that where the supplier of taxable service receives an amount up to one thousand
rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such
excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to
such excess amount.
Explanation. –– For the purposes of clauses (a) and (b) ––
(i) the supply shall be deemed to have been made to the extent it is covered by the
invoice or, as the case may be, the payment;
(ii) “the date of receipt of payment” shall be the date on which the payment is
entered in the books of account of the supplier or the date on which the payment is credited
to his bank account, whichever is earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge
basis, the time of supply shall be the earlier of the following dates, namely: ––
(a) the date of payment as entered in the books of account of the recipient or the
date on which the payment is debited in his bank account, whichever is earlier; or
(b) the date immediately following sixty days from the date of issue of invoice or
any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under clause (a) or
clause (b), the time of supply shall be the date of entry in the books of account of the recipient of
supply:
Provided further that in case of supply by associated enterprises, where the supplier of service is
located outside India, the time of supply shall be the date of entry in the books of account of the
recipient of supply or the date of payment, whichever is earlier.
(4) In case of supply of vouchers by a supplier, the time of supply shall be ––
www.taxguru.in
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
(5) Where it is not possible to determine the time of supply under the provisions of sub-
section (2) or sub-section (3) or sub-section (4), the time of supply shall ––
(a) in a case where a periodical return has to be filed, be the date on which such
return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of supply by way
of interest, late fee or penalty for delayed payment of any consideration shall be the date on which
the supplier receives such addition in value.
16[Sec.14. Change in rate of tax in respect of supply of goods or service.
Notwithstanding anything contained in section 12 or section 13, the time of supply, where
there is a change in the rate of tax in respect of goods or services or both, shall be determined in
the following manner, namely: ––
(a) in case the goods or services or both have been supplied before the change in
rate of tax, ––
(i) where the invoice for the same has been issued and the payment is also
received after the change in rate of tax, the time of supply shall be the date of receipt
of payment or the date of issue of invoice, whichever is earlier; or
(ii) where the invoice has been issued prior to the change in rate of tax but
payment is received after the change in rate of tax, the time of supply shall be the
date of issue of invoice; or
(iii) where the payment has been received before the change in rate of tax,
but the invoice for the same is issued after the change in rate of tax, the time of
supply shall be the date of receipt of payment;
(b) in case the goods or services or both have been supplied after the change in rate
of tax, ––
(i) where the payment is received after the change in rate of tax but the
invoice has been issued prior to the change in rate of tax, the time of supply shall
be the date of receipt of payment; or
www.taxguru.in
(ii) where the invoice has been issued and payment is received before the
change in rate of tax, the time of supply shall be the date of receipt of payment or
date of issue of invoice, whichever is earlier; or
(iii) where the invoice has been issued after the change in rate of tax but the
payment is received before the change in rate of tax, the time of supply shall be the
date of issue of invoice:
Provided that the date of receipt of payment shall be the date of credit in the bank account
if such credit in the bank account is after four working days from the date of change in the rate of
tax.
Explanation. –– For the purposes of this section, “the date of receipt of payment” shall be
the date on which the payment is entered in the books of account of the supplier or the date on
which the payment is credited to his bank account, whichever is earlier. 16.Sec.14 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
17[Sec.15. Value of taxable supply: -
(1) The value of a supply of goods or services or both shall be the transaction value, which
is the price actually paid or payable for the said supply of goods or services or both where the
supplier and the recipient of the supply are not related and the price is the sole consideration for
the supply.
(2) The value of supply shall include–
(a) any taxes, duties, cesses, fees and charges levied under any law for the time
being in force other than this Act, the State Goods and Services Tax Act, the Union
Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to
States) Act, if charged separately by the supplier;
(b) any amount that the supplier is liable to pay in relation to such supply but which
has been incurred by the recipient of the supply and not included in the price actually paid
or payable for the goods or services or both;
(c) incidental expenses, including commission and packing, charged by the supplier
to the recipient of a supply and any amount charged for anything done by the supplier in
respect of the supply of goods or services or both at the time of, or before delivery of goods
or supply of services;
(d) interest or late fee or penalty for delayed payment of any consideration for any
supply; and
(e) subsidies directly linked to the price excluding subsidies provided by the Central
Government and State Governments.
www.taxguru.in
Explanation: – For the purposes of this sub-section, the amount of subsidy shall be included
in the value of supply of the supplier who receives the subsidy.
(3) The value of the supply shall not include any discount which is given–
(a) before or at the time of the supply if such discount has been duly recorded in
the invoice issued in respect of such supply; and
(b) after the supply has been effected, if —
(i) such discount is established in terms of an agreement entered into at or
before the time of such supply and specifically linked to relevant invoices; and
(ii) input tax credit as is attributable to the discount on the basis of document
issued by the supplier has been reversed by the recipient of the supply.
(4) Where the value of the supply of goods or services or both cannot be determined under
sub-section (1), the same shall be determined in such manner as may be prescribed.
(5) Notwithstanding anything contained in sub-section (1) or sub-section (4), the value of
such supplies as may be notified by the Government on the recommendations of the Council shall
be determined in such manner as may be prescribed.
Explanation: —For the purposes of this Act, ––
(a) persons shall be deemed to be “related persons” if ––
(i) such persons are officers or directors of one another’s businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns, controls or holds twenty-five per
cent. or more of the outstanding voting stock or shares of both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family;
(b) the term “person” also includes legal persons;
www.taxguru.in
(c) persons who are associated in the business of one another in that one is the sole
agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be
deemed to be related.
17.Sec.15 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
CHAPTER V
INPUT TAX CREDIT
18[Sec.16. Eligibility and conditions for taking input tax credit.
(1) Every registered person shall, subject to such conditions and restrictions as may be
prescribed and in the manner specified in section 49, be entitled to take credit of input tax
charged on any supply of goods or services or both to him which are used or intended to be used
in the course or furtherance of his business and the said amount shall be credited to the
electronic credit ledger of such person.
18.Sec.16 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
(2) Notwithstanding anything contained in this section, no registered person shall be
entitled to the credit of any input tax in respect of any supply of goods or services or both to him
unless, –
(a) he is in possession of a tax invoice or debit note issued by a supplier registered
under this Act, or such other tax paying documents as may be prescribed;
(b) he has received the goods or services or both.
18a [ Explanation. - For the purposes of this clause, it shall be deemed that the registered person
has received the goods or, as the case may be, services-
(i) Where the goods are delivered by the supplier to a recipient or any other person on
the direction of such registered person, whether acting as an agent or otherwise,
before or during movement of goods, either by way of transfer of documents of title
to goods or otherwise.
www.taxguru.in
(ii) Where the services are provided by the supplier to any person on the direction of
and on account of such registered person.]
18a. Subs. for the “Explanation.—For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise”;by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(c) subject to the provisions of 18b [section 41 or section 43A], the tax charged in
respect of such supply has been actually paid to the Government, either in cash or through
utilisation of input tax credit admissible in respect of the said supply; and
18b.Subs. for the words, figures and letter “section 41”by the CGST (Amendment) Act’2018, (No.31 of 2018),
dt.30.08.2018, w.e.f. yet to be notified
(d) he has furnished the return under section 39:
Provided that where the goods against an invoice are received in lots or installments, the
registered person shall be entitled to take credit upon receipt of the last lot or installment:
Provided further that where a recipient fails to pay to the supplier of goods or services or
both, other than the supplies on which tax is payable on reverse charge basis, the amount towards
the value of supply along with tax payable thereon within a period of one hundred and eighty days
from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed
by the recipient shall be added to his output tax liability, along with interest thereon, in such
manner as may be prescribed:
Provided also that the recipient shall be entitled to avail of the credit of input tax on
payment made by him of the amount towards the value of supply of goods or services or both
along with tax payable thereon.
(3) Where the registered person has claimed depreciation on the tax component of the cost
of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961, the
input tax credit on the said tax component shall not be allowed.
(4) A registered person shall not be entitled to take input tax credit in respect of any invoice
or debit note for supply of goods or services or both after the due date of furnishing of the return
under section 39 for the month of September following the end of financial year to which such
invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return,
whichever is earlier.
18a [ Provided that the registered person shall be entitled to take input tax credit after the due
date of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year
www.taxguru.in
2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019.] 18a. Inserted Proviso Vide Order. No.2/2018-CT, dt.31st Dec’ 2018 ( the CGST ( Second Removal of Difficulties) Order, 2018.
19[Sec.17. Appointment of credit and blocked credits.
(1) Where the goods or services or both are used by the registered person partly for the
purpose of any business and partly for other purposes, the amount of credit shall be restricted to
so much of the input tax as is attributable to the purposes of his business.
19.Sec.17 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
(2) Where the goods or services or both are used by the registered person partly for
effecting taxable supplies including zero-rated supplies under this Act or under the Integrated
Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the
amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable
supplies including zero-rated supplies.
(3) The value of exempt supply under sub-section (2) shall be such as may be prescribed,
and shall include supplies on which the recipient is liable to pay tax on reverse charge basis,
transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale
of building.
19a [ Explanation.- For the purposes of this sub-section, the expression “value of exempt
supply” shall not include the value of activities or transactions specified in Schedule III, except
those specified in paragraph 5 of the said Schedule.]
19a. Inserted the Explanation by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018.w.e.f. 01-02-
2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(4) A banking company or a financial institution including a non-banking financial
company, engaged in supplying services by way of accepting deposits, extending loans or
advances shall have the option to either comply with the provisions of sub-section (2), or avail of,
every month, an amount equal to fifty percent of the eligible input tax credit on inputs, capital
goods and input services in that month and the rest shall lapse:
Provided that the option once exercised shall not be withdrawn during the remaining part
of the financial year:
Provided further that the restriction of fifty percent shall not apply to the tax paid on
supplies made by one registered person to another registered person having the same Permanent
Account Number.
www.taxguru.in
(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section
(1) of section 18, input tax credit shall not be available in respect of the following, namely: —
19b[(a) motor vehicles for transportation of persons having approved seating capacity of not
more than thirteen persons (including the driver), except when they are used for making
the following taxable supplies, namely: -
(A) further supply of such motor vehicles; or
(B) transportation of passenger; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used —
(i) for making the following taxable supplies, namely:--
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(ab) services of general insurance, servicing, repair and maintenance in so far as they relate
to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):
Provided that the input tax credit in respect of such services shall be available—
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa)
are used for the purposes specified therein;
(ii) where received by a taxable person engaged—
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor
vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both—
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and
plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to
www.taxguru.in
in clause (a) or clause (aa) except when used for the purposes specified therein, life
insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall
be available where an inwards supply of such goods or services or both is used by a
registered person for making an outward taxable supply of the same category of goods or
services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or home travel
concession:
Provided that the input tax credit in respect of such goods or services or both shall be
available, where it is obligatory for an employer to provide the same to its employees under any
law for the time being in force.]
19b.Subs. for the clauses “(a) motor vehicles and other conveyances except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vehicles or conveyances; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehiclesor conveyances;
(ii) for transportation of goods;
(b) the following supply of goods or services or both—
(i) food and beverages, outdoor catering, beauty treatment, health services,cosmetic and plastic surgery except where an inward supply of goods or servicesor both of a particular category is used by a registered person for making anoutward taxable supply of the same category of goods or services or both or asan element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where––
(A) the Government notifies the services which are obligatory for anemployer to provide
to its employees under any law for the time being inforce; or
(B) such inward supply of goods or services or both of a particularcategory is used by a registered person for making an outward taxablesupply of the same category of goods or services or
both or as part of ataxable composite or mixed supply; and (iv) travel benefits extended to employees on vacation such as leave orhome travel concession;”
by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(c) works contract services when supplied for construction of an immovable
property (other than plant and machinery) except where it is an input service for further
supply of works contract service;
www.taxguru.in
(d) goods or services or both received by a taxable person for construction of an
immovable property (other than plant or machinery) on his own account including when
such goods or services or both are used in the course or furtherance of business.
Explanation: – For the purposes of clauses (c) and (d), the expression “construction”
includes re-construction, renovation, additions or alterations or repairs, to the extent of
capitalisation, to the said immovable property;
(e) goods or services or both on which tax has been paid under section 10;
(f) goods or services or both received by a non-resident taxable person except on
goods imported by him;
(g) goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free
samples; and
(i) any tax paid in accordance with the provisions of sections 74, 129 and 130.
(6) The Government may prescribe the manner in which the credit referred to in sub-
sections (1) and (2) may be attributed.
Explanation. – For the purposes of this Chapter and Chapter VI, the expression “plant and
machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural
support that are used for making outward supply of goods or services or both and includes such
foundation and structural supports but excludes —
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
20[Sec.18. Availability of credit in special circumstances.
(1) Subject to such conditions and restrictions as may be prescribed —
(a) a person who has applied for registration under this Act within thirty days from the date on
which he becomes liable to registration and has been granted such registration shall be entitled to take credit
of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in
stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions
of this Act;
www.taxguru.in
(b) a person who takes registration under sub-section (3) of section 25 shall been titled to
take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock on the day immediately preceding the date of grant of registration;
(c) where any registered person ceases to pay tax under section 10, he shall been titled to
take credit of input tax in respect of inputs held in stock, inputs contained in semi-finished or
finished goods held in stock and on capital goods on the day immediately preceding the date from
which he becomes liable to pay tax under section 9:
Provided that the credit on capital goods shall be reduced by such percentage points as may
be prescribed;
(d) where an exempt supply of goods or services or both by a registered person becomes a
taxable supply, such person shall be entitled to take credit of input tax in respect of inputs held in
stock and inputs contained in semi-finished or finished goods held in stock relatable to such exempt
supply and on capital goods exclusively used for such exempt supply on the day immediately
preceding the date from which such supply becomes taxable:
Provided that the credit on capital goods shall be reduced by such percentage points as may
be prescribed.
20.Sec.18 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
(2) A registered person shall not be entitled to take input tax credit under sub-section (1)
in respect of any supply of goods or services or both to him after the expiry of one year from the
date of issue of tax invoice relating to such supply.
(3) Where there is a change in the constitution of a registered person on account of sale,
merger, demerger, amalgamation, lease or transfer of the business with the specific provisions for
transfer of liabilities, the said registered person shall be allowed to transfer the input tax credit
which remains unutilised in his electronic credit ledger to such sold, merged, demerged,
amalgamated, leased or transferred business in such manner as may be prescribed.
(4) Where any registered person who has availed of input tax credit opts to pay tax under
section 10 or, where the goods or services or both supplied by him become wholly exempt, he shall
pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent
to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock and on capital goods, reduced by such percentage points as may be
prescribed, on the day immediately preceding the date of exercising of such option or, as the case
may be, the date of such exemption:
Provided that after payment of such amount, the balance of input tax credit, if any, lying in
his electronic credit ledger shall lapse.
www.taxguru.in
(5) The amount of credit under sub-section (1) and the amount payable under sub-section
(4) shall be calculated in such manner as may be prescribed.
(6) In case of supply of capital goods or plant and machinery, on which input tax credithas
been taken, the registered person shall pay an amount equal to the input tax credit taken on the said
capital goods or plant and machinery reduced by such percentage points as may be prescribed or
the tax on the transaction value of such capital goods or plant and machinery determined under
section 15, whichever is higher:
Provided that where refractory bricks, moulds and dies, jigs and fixtures are supplied as
scrap, the taxable person may pay tax on the transaction value of such goods determined under
section 15.
21[Sec.19. Taking input tax credit in respect of inputs and capital goods sent for job work.
(1) The principal shall, subject to such conditions and restrictions as may be prescribed, be
allowed input tax credit on inputs sent to a job worker for job work.
21.Sec.19 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
(2) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal
shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job
worker for job work without being first brought to his place of business.
(3) Where the inputs sent for job work are not received back by the principal after completion of
job work or otherwise or are not supplied from the place of business of the job worker in
accordance with clause (a) or clause (b) of sub-section (1) of section 143 within one year of being
sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker
on the day when the said inputs were sent out:
Provided that where the inputs are sent directly to a job worker, the period of one year shall
be counted from the date of receipt of inputs by the job worker.
(4) The principal shall, subject to such conditions and restrictions as may be prescribed, be
allowed input tax credit on capital goods sent to a job worker for job work.
(5) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the
principal shall be entitled to take credit of input tax on capital goods even if the capital goods are
directly sent to a job worker for job work without being first brought to his place of business.
(6) Where the capital goods sent for job work are not received back by the principal within
a period of three years of being sent out, it shall be deemed that such capital goods had been
supplied by the principal to the job worker on the day when the said capital goods were sent out:
www.taxguru.in
Provided that where the capital goods are sent directly to a job worker, the period of three
years shall be counted from the date of receipt of capital goods by the job worker.
(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies,
jigs and fixtures, or tools sent out to a job worker for job work.
Explanation: – For the purpose of this section, “principal” means the person referred to in
section 143.
22[Sec.20. Manner of distribution of credit by Input Service Distributor.
(1) The Input Service Distributor shall distribute the credit of central tax as central tax or
integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document
containing the amount of input tax credit being distributed in such manner as may be prescribed.
22.Sec.20 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
(2) The Input Service Distributor may distribute the credit subject to the following
conditions, namely: –
(a) the credit can be distributed to the recipients of credit against a document
containing such details as may be prescribed;
(b) the amount of the credit distributed shall not exceed the amount of credit
available for distribution;
(c) the credit of tax paid on input services attributable to a recipient of credit shallbe
distributed only to that recipient;
(d) the credit of tax paid on input services attributable to more than one recipient of
credit shall be distributed amongst such recipients to whom the input service is
attributable and such distribution shall be pro rata on the basis of the turnover in a
State or turnover in a Union territory of such recipient, during the relevant period,
to the aggregate of the turnover of all such recipients to whom such input service is
attributable and which are operational in the current year, during the said relevant
period;
(e) the credit of tax paid on input services attributable to all recipients of credit
shall be distributed amongst such recipients and such distribution shall be pro rata
on the basis of the turnover in a State or turnover in a Union territory of such
recipient, during the relevant period, to the aggregate of the turnover of all
recipients and which are operational in the current year, during the said relevant
period.
Explanation. – For the purposes of this section, –
www.taxguru.in
(a) the “relevant period” shall be –
(i) if the recipients of credit have turnover in their States or Union territories
in the financial year preceding the year during which credit is tobe
distributed, the said financial year; or
(ii) if some or all recipients of the credit do not have any turnover in their
States or Union territories in the financial year preceding the year during
which the credit is to be distributed, the last quarter for which details of such
turnover of all the recipients are available, previous to the month during
which credit is to be distributed;
(b) the expression “recipient of credit” means the supplier of goods or
services or both having the same Permanent Account Number as that of the
Input Service Distributor;
(c) the term ‘‘turnover’’, in relation to any registered person engaged in the
supply of taxable goods as well as goods not taxable under this Act, means
the value of turnover, reduced by the amount of any duty or tax levied 22a[under entries 84 and 92A] of List I of the Seventh Schedule to the
Constitution and entries 51 and 54 of List II of the said Schedule.
22a.Subs. for the words, figures and letter “under entry 84” bytheCGST (Amendment) Act’2018, (No.31 of
2018), Dt.30.08.2018.w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
23[Sec.21. Manner of Recovery of credit distributed in excess.
Where the Input Service Distributor distributes the credit in contravention of the provisions
contained in section 20 resulting in excess distribution of credit to one or more recipients of credit,
the excess credit so distributed shall be recovered from such recipients along with interest, and the
provisions of section 73 or section 74,as the case may be, shall, mutatis mutandis, apply for
determination of amount to be recovered.
23.Sec.21 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
CHAPTER VI
REGISTRATION
24[Sec.22. Persons liable for registration.
(1) Every supplier shall be liable to be registered under this Act in the State or Union
territory, other than special category States, from where he makes a taxable supply of goods or
services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
www.taxguru.in
Provided that where such person makes taxable supplies of goods or services or both from
any of the special category States, he shall be liable to be registered if his aggregate turnover in a
financial year exceeds ten lakh rupees.
24a [ Provided further that the Government may, at the request of a special category State
and on the recommendations of the Council, enhance the aggregate turnover referred to in the first
proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such
conditions limitation, as may be notified.]
24a. Inserted the proviso by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No.
02/2019- ( CT ) , Dt. 29-01-2019
(2) Every person who, on the day immediately preceding the appointed day, is registered
or holds a licence under an existing law, shall be liable to be registered under this Act with effect
from the appointed day.
(3) Where a business carried on by a taxable person registered under this Act is transferred,
whether on account of succession or otherwise, to another person as a going concern, the transferee
or the successor, as the case may be, shall be liable to be registered with effect from the date of
such transfer or succession.
(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer
pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be,
demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise,
the transferee shall be liable to be registered, with effect from the date on which the Registrar of
Companies issues a certificate of incorporation giving effect to such order of the High Court or
Tribunal.
Explanation.– For the purposes of this section,––
(i) the expression “aggregate turnover” shall include all supplies made by the
taxable person, whether on his own account or made on behalf of all his principals;
(ii) the supply of goods, after completion of job work, by a registered job worker
shall be treated as the supply of goods by the principal referred to in section 143,
and the value of such goods shall not be included in the aggregate turnover of the
registered job worker;
(iii) the expression “special category States” shall mean the States as specified in
sub-clause (g) of clause (4) of article 279A of the Constitution25[except the State of
Jammu and Kashmir] 25a [and State of Arunachal Pradesh, Assam, Himachal Pradesh,
Meghalaya, Sikkim and Uttrakhand ] 24.Sec.22 came into force on 22-06-2017, vide N.No.1/2017-CT, dt.19-06-2017.
25.Inserted the words by the CGST ( Extension to J & K ) Act,2017 ( No.26 of 2017 ) Dt. 23-08-2017, w.e.f. 08-07-2017.
25a. Inserted for the words” bythe CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018, .w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
www.taxguru.in
26[Sec.23. Persons of liable for registration.
(1) The following persons shall not be liable to registration, namely: –
(a) any person engaged exclusively in the business of supplying goods or services or
both that are not liable to tax or wholly exempt from tax under this Act or under the
Integrated Goods and Services Tax Act;
(b) an agriculturist, to the extent of supply of produce out of cultivation of land.
(2)The Government may, on the recommendations of the Council, by notification,
specify the category of persons who may be exempted from obtaining registration
under this Act.
26.Sec.23 came into force on22-06-2017, vide Noti. No.1/2017-CT, dt.19-06-2017.
27[Sec.24. Compulsory registration in certain cases.
Notwithstanding anything contained in sub-section (1) of section 22, the following
categories of persons shall be required to be registered under this Act, –
(i) persons making any inter-State taxable supply;
(ii) casual taxable persons making taxable supply;
(iii) persons who are required to pay tax under reverse charge;
(iv) person who are required to pay tax under sub-section (5) of section 9;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under section 51, whether or not separately
registered under this Act;
(vii) persons who make taxable supply of goods or services or both on behalf of other
taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether or not separately registered under this Act;
(ix) persons who supply goods or services or both, other than supplies specified under sub-
section (5) of section 9, through such electronic commerce operator who is required to
collect tax at source under section 52;
(x) every electronic commerce operator27a [ who is required to collet tax at source under
Section 52 ]
www.taxguru.in
27.Sec.24 came into force on 22-06-2017, vide Noti. No.1/2017-CT, dt.19-06-2017.
27a.Inserted for the words bythe CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(xi) every person supplying online information and database access or retrieval services
from a place outside India to a person in India, other than a registered person; and
(xii) such other person or class of persons as may be notified by the Government on the
recommendations of the Council.
28[Sec.25. Procedure for registration.
(1) Every person who is liable to be registered under section 22 or section 24 shall apply for
registration in every such State or Union territory in which he is so liable within thirty days from
the date on which he becomes liable to registration, in such manner and subject to such conditions
as may be prescribed:
28.Sec.25 came into force on 22-06-2017, vide Noti. No.1/2017-CT, dt.19-06-2017.
Provided that a casual taxable person or a non-resident taxable person shall apply for
registration at least five days prior to the commencement of business.
28a [ Provided further that a person having a unit, as defined in the Special Economic Zones
Act, 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to
apply for a separate registration, as distinct from his place of business located outside the Special
Economic Zone in the same State or Union territory. ]
28a.Inserted the proviso by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
Explanation: — Every person who makes a supply from the territorial waters of India shall
obtain registration in the coastal State or Union territory where the nearest point of the appropriate
base line is located.
(2) A person seeking registration under this Act shall be granted a single registration in a
State or Union territory:
28b [ Provided that a person having multiple places of business in a State or Union territory
may be granted a separate registration for each such place of business, subject to such conditions
as may be prescribed.]
28b. Subs. for the proviso “Provided that a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical, subject to such conditionsas may be prescribed.” by the CGST
(Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
www.taxguru.in
(3) A person, though not liable to be registered under section 22 or section 24 may get
himself registered voluntarily, and all provisions of this Act, as are applicable to a registered
person, shall apply to such person.
(4) A person who has obtained or is required to obtain more than one registration, whether
in one State or Union territory or more than one State or Union territory shall, in respect of each
such registration, be treated as distinct persons for the purposes of this Act.
(5) Where a person who has obtained or is required to obtain registration in a State or Union
territory in respect of an establishment, has an establishment in another State or Union territory,
then such establishments shall be treated as establishments of distinct persons for the purposes of
this Act.
(6) Every person shall have a Permanent Account Number issued under the Income tax
Act, 1961 in order to be eligible for grant of registration: (43 of 1961)
Provided that a person required to deduct tax under section 51 may have, in lieu of a
Permanent Account Number, a Tax Deduction and Collection Account Number issued under the
said Act in order to be eligible for grant of registration.
(7) Notwithstanding anything contained in sub-section (6), a non-resident taxable person
may be granted registration under sub-section (1) on the basis of such other documents as may be
prescribed.
(8) Where a person who is liable to be registered under this Act fails to obtain registration,
the proper officer may, without prejudice to any action which may be taken under this Act or under
any other law for the time being in force, proceed to register such person in such manner as may
be prescribed.
(9) Notwithstanding anything contained in sub-section (1), –
(a) any specialised agency of the United Nations Organisation or any Multilateral
Financial Institution and Organisation notified under the United Nations (Privileges
and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries;
and
(b) any other person or class of persons, as may be notified by the Commissioner,
shall be granted a Unique Identity Number in such manner and for such purposes, including
refund of taxes on the notified supplies of goods or services or both received by them, as
may be prescribed.
(10) The registration or the Unique Identity Number shall be granted or rejected after due
verification in such manner and within such period as may be prescribed.
(11) A certificate of registration shall be issued in such form and with effect from such date
as may be prescribed.
www.taxguru.in
(12) A registration or a Unique Identity Number shall be deemed to have been granted after
the expiry of the period prescribed under sub-section (10), if no deficiency has been communicated
to the applicant within that period.
29[Sec.26. Deemed registration.
(1) The grant of registration or the Unique Identity Number under the State Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be a grant
of registration or the Unique Identity Number under this Act subject to the condition that the
application for registration or the Unique Identity Number has not been rejected under this Act
within the time specified in sub-section (10) of section 25.
29.Sec.26 came into force on 22-06-2017, vide Noti. No.1/2017, dt.19-06-2017.
(2) Notwithstanding anything contained in sub-section (10) of section 25, any rejection of
application for registration or the Unique Identity Number under the State Goods and Services Tax
Act or the Union Territory Goods and Services Tax Act shall be deemed to be a rejection of
application for registration under this Act.
30[Sec.27. Special provisions relating to casual taxable person and non-resident taxable person.
(1) The certificate of registration issued to a casual taxable person or a non-resident taxable
person shall be valid for the period specified in the application for registration or ninety days
from the effective date of registration, whichever is earlier and such person shall make taxable
supplies only after the issuance of the certificate of registration:
30.Sec.27 came into force on 22-06-2017, vide Noti. No.1/2017-CT, dt.19-06-2017.
Provided that the proper officer may, on sufficient cause being shown by the said taxable person,
extend the said period of ninety days by a further period not exceeding ninety days.
(2) A casual taxable person or a non-resident taxable person shall, at the time of submission
of application for registration under sub-section (1) of section 25, make an advance deposit of tax
in an amount equivalent to the estimated tax liability of such person for the period for which the
registration is sought:
Provided that where any extension of time is sought under sub-section (1), such taxable
person shall deposit an additional amount of tax equivalent to the estimated tax liability of such
person for the period for which the extension is sought.
(3) The amount deposited under sub-section (2) shall be credited to the electronic cash
ledger of such person and shall be utilised in the manner provided under section 49.
31[Sec.28. Amendment of registration.
(1) Every registered person and a person to whom a Unique Identity Number has been
assigned shall inform the proper officer of any changes in the information furnished at the time of
www.taxguru.in
registration or subsequent there to, in such form and manner and within such period as may be
prescribed.
(2) The proper officer may, on the basis of information furnished under sub-section (1) or
as ascertained by him, approve or reject amendments in the registration particulars in such
manner and within such period as may be prescribed:
Provided that approval of the proper officer shall not be required in respect of amendment
of such particulars as may be prescribed:
Provided further that the proper officer shall not reject the application for amendment in
the registration particulars without giving the person an opportunity of being heard.
(3) Any rejection or approval of amendments under the State Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed
to be a rejection or approval under this Act.
31.Sec. 28 came into force on 22-06-2017, vide N.No.1/2017-CT, dt.19-06-2017.
32[Sec.29. Cancellation 32a [or suspension] of Registration.
(1) The proper officer may, either on his own motion or on an application filed by the
registered person or by his legal heirs, in case of death of such person, cancel the registration, in
such manner and within such period as may be prescribed, having regard to the circumstances
where, –
(a) the business has been discontinued, transferred fully for any reason including death of
the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
(b) there is any change in the constitution of the business; or
(c) the taxable person, other than the person registered under sub-section (3) of section 25,
is no longer liable to be registered under section 22 or section 24.
32.Sec.29 came into force on 22-06-2017, vide N. No.1/2017-CT, dt.19-06-2017.
32a. Inserted for the words “or suspension” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-
02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
32b [ Provided that during pendency of the proceedings relating to cancellation of
registration filed by the registered person, the registration may be suspended for such period find
in such manner as may be prescribed;]
www.taxguru.in
32b. Inserted for the words bthe CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(2) The proper officer may cancel the registration of a person from such date, including any
retrospective date, as he may deem fit, where, –
(a) a registered person has contravened such provisions of the Act or the rules made there
under as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax
periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished
returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of section 25 has
not commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of
facts:
Provided that the proper officer shall not cancel the registration without giving the person
an opportunity of being heard.
32c [ Provided further that during pendency of the proceedings relating to cancellation of
registration, the proper officer may suspend the registration for such period and in such period and
in such manner as may be prescribed.]
32c. Inserted the proviso by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(3) The cancellation of registration under this section shall not affect the liability of the
person to pay tax and other dues under this Act or to discharge any obligation under this
Act or the rules made there under for any period prior to the date of cancellation whether
or not such tax and other dues are determined before or after the date of cancellation.
(4) The cancellation of registration under the State Goods and Services Tax Act or the
Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a
cancellation of registration under this Act.
(5) Every registered person whose registration is cancelled shall pay an amount, by way of
debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of
input tax in respect of inputs held in stock and inputs contained in semi-finished or finished
goods held in stock or capital goods or plant and machinery on the day immediately
preceding the date of such cancellation or the output tax payable on such goods, whichever
is higher, calculated in such manner as may be prescribed:
www.taxguru.in
Provided that in case of capital goods or plant and machinery, the taxable person shall pay
an amount equal to the input tax credit taken on the said capital goods or plant and
machinery, reduced by such percentage points as may be prescribed or the tax on the
transaction value of such capital goods or plant and machinery under section 15,
whicheveris higher.
(6) The amount payable under sub-section (5) shall be calculated in such manner as may
be prescribed.
33[Sec.30. Revocation of cancellation of registration.
(1) Subject to such conditions as may be prescribed, any registered person, whose
registration is cancelled by the proper officer on his own motion, may apply to such officer for
revocation of cancellation of the registration in the prescribed manner within thirty days from the
date of service of the cancellation order.
(2) The proper officer may, in such manner and within such period as may be prescribed, by order,
either revoke cancellation of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not be
rejected unless the applicant has been given an opportunity of being heard.
(3) The revocation of cancellation of registration under the State Goods and Services Tax Act or
the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a
revocation of cancellation of registration under this Act. 33.Sec.30 came into force on 22-06-2017, vide N.No.1/2017-CT, dt.19-06-2017.
CHAPTER VII
TAX INVOICE, CREDIT AND DEBIT NOTES
34[Sec.31. Tax invoice.
(1) A registered person supplying taxable goods shall, before or at the time of, —
(a) removal of goods for supply to the recipient, where the supply involves movement of
goods; or
(b) delivery of goods or making available thereof to the recipient, in any other case,
issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon
and such other particulars as may be prescribed:
www.taxguru.in
Provided that the Government may, on the recommendations of the Council, by
notification, specify the categories of goods or supplies in respect of which a tax invoice shall be
issued, within such time and in such manner as may be prescribed. 34.Sec.31 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) A registered person supplying taxable services shall, before or after the provision of service
but within a prescribed period, issue a tax invoice, showing the description, value, tax charged
thereon and such other particulars as may be prescribed:
Provided that the Government may, on the recommendations of the Council, by notification and
subject to such conditions as may be mentioned therein, specify the categories of services in respect
of which––
(a) any other document issued in relation to the supply shall be deemed to be a tax invoice;
or
(b) tax invoice may not be issued.
(3) Notwithstanding anything contained in sub-sections (1) and (2) ––
(a) a registered person may, within one month from the date of issuance of certificate of
registration and in such manner as may be prescribed, issue a revised invoice against the invoice
already issued during the period beginning with the effective date of registration till the date of
issuance of certificate of registration to him;
(b) a registered person may not issue a tax invoice if the value of the goods or services or
both supplied is less than two hundred rupees subject to such conditions and in such manner as
may be prescribed;
(c) a registered person supplying exempted goods or services or both or paying tax under
the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such
particulars and in such manner as may be prescribed:
Provided that the registered person may not issue a bill of supply if the value of the goods
or services or both supplied is less than two hundred rupees subject to such conditions and in such
manner as may be prescribed;
(d) a registered person shall, on receipt of advance payment with respect to any supply of
goods or services or both, issue a receipt voucher or any other document, containing such
particulars as may be prescribed, evidencing receipt of such payment;
(e) where, on receipt of advance payment with respect to any supply of goods or services
or both the registered person issues a receipt voucher, but subsequently no supply is made and no
www.taxguru.in
tax invoice is issued in pursuance thereof, the said registered person may issue to the person who
had made the payment, a refund voucher against such payment;
(f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of
section 9 shall issue an invoice in respect of goods or services or both received by him from the
supplier who is not registered on the date of receipt of goods or services or both;
(g) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of
section 9 shall issue a payment voucher at the time of making payment to the supplier.
(4) In case of continuous supply of goods, where successive statements of accounts or successive
payments are involved, the invoice shall be issued before or at the time each such statement is
issued or, as the case may be, each such payment is received.
(5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of
services, ––
(a) where the due date of payment is ascertainable from the contract, the invoice shall be
issued on or before the due date of payment;
(b) where the due date of payment is not ascertainable from the contract, the invoice shall
be issued before or at the time when the supplier of service receives the payment;
(c) where the payment is linked to the completion of an event, the invoice shall be issued
on or before the date of completion of that event.
(6) In a case where the supply of services ceases under a contract before the completion of the
supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be
issued to the extent of the supply made before such cessation.
(7) Notwithstanding anything contained in sub-section (1), where the goods being sent or taken on
approval for sale or return are removed before the supply takes place, the invoice shall be issued
before or at the time of supply or six months from the date of removal, whichever is earlier.
Explanation. –– For the purposes of this section, the expression “tax invoice” shall include
any revised invoice issued by the supplier in respect of a supply made earlier.
35[Sec.32. Prohibition of unauthorized collection of tax.
(1) A person who is not a registered person shall not collect in respect of any supply of goods
or services or both any amount by way of tax under this Act.
35.Sec.32 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) No registered person shall collect tax except in accordance with the provisions of this
Act or the rules made thereunder.
www.taxguru.in
36[Sec.33. Amount of tax to be indicated in tax invoice and other documents.
Notwithstanding anything contained in this Act or any other law for the time being in force,
where any supply is made for a consideration, every person who is liable to pay tax for such
supply shall prominently indicate in all documents relating to assessment, tax invoice and
other like documents, the amount of tax which shall form part of the price at which such supply is
made.
36.Sec.33 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
37[Sec.34. Credit and Debit notes.
(1) 37a[ Where one or more tax invoices have] been issued for supply of any goods or
services or both and the taxable value or tax charged in that tax invoice is found to exceed the
taxable value or tax payable in respect of such supply, or where the goods supplied are returned
by the recipient, or where goods or services or both supplied are found to be deficient, the
registered person, who has supplied such goods or services or both, may issue to the recipient 37b[one or more credit notes for supplies made in a financial year] containing such particulars as
may be prescribed.
37.Sec.34 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
37a. Subs. for the words “Where a tax invoice has” bythe CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
37b. Subs. for the words “a credit note” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(2) Any registered person who issues a credit note in relation to a supply of goods or
services or both shall declare the details of such credit note in the return for the month during
which such credit note has been issued but not later than September following the end of the
financial year in which such supply was made, or the date of furnishing of the relevant annual
return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be
prescribed:
Provided that no reduction in output tax liability of the supplier shall be permitted, if the
incidence of tax and interest on such supply has been passed on to any other person.
(3) 37c[ Where one or more tax invoices have ] been issued for supply of any goods or
services or both and the taxable value or tax charged in that tax invoice is found to be less than the
taxable value or tax payable in respect of such supply, the registered person, who has supplied
such goods or services or both, shall issue to the recipient 37d[one or more debit notes for supplies
made in a financial year] containing such particulars as may be prescribed.
37c. Subs. for the words “Where a tax invoice has” by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
37d. Subs. for the words “a debit note” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
www.taxguru.in
(4) Any registered person who issues a debit note in relation to a supply of goods or services
or both shall declare the details of such debit note in the return for the month during which such
debit note has been issued and the tax liability shall be adjusted in such manner as may be
prescribed.
Explanation. – For the purposes of this Act, the expression “debit note” shall include a
supplementary invoice.
CHAPTER VIII
ACCOUNTS AND RECORDS 38[Sec.35. Accounts and other records.
(1) Every registered person shall keep and maintain, at his principal place of business, as
mentioned in the certificate of registration, a true and correct account of—
(a) production or manufacture of goods;
(b) inward and outward supply of goods or services or both;
(c) stock of goods;
(d) input tax credit availed;
(e) output tax payable and paid; and
(f) such other particulars as may be prescribed:
Provided that where more than one place of business is specified in the certificate of
registration, the accounts relating to each place of business shall be kept at such places of business:
Provided further that the registered person may keep and maintain such accounts and other
particulars in electronic form in such manner as may be prescribed.
38.Sec.35 came into force on 01-07-2017, vide Noti. No.9/2017-Ct, dt.28-06-2017.
(2) Every owner or operator of warehouse or godown or any other place used for storage
of goods and every transporter, irrespective of whether he is a registered person or not, shall
www.taxguru.in
maintain records of the consigner, consignee and other relevant details of the goods in such manner
as may be prescribed.
(3) The Commissioner may notify a class of taxable persons to maintain additional
accounts or documents for such purpose as may be specified therein.
(4) Where the Commissioner considers that any class of taxable person is not in a position
to keep and maintain accounts in accordance with the provisions of this section, he may, for reasons
to be recorded in writing, permit such class of taxable persons to maintain accounts in such manner
as may be prescribed.
(5) Every registered person whose turnover during a financial year exceeds the prescribed
limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit
a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section
44 and such other documents in such form and manner as may be prescribed.
38a [Provided that nothing contained in the sub-section shall apply to any department of the
Central Government or a State Government or a local authority, whose books of account are
subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for
auditing the accounts of local authorities under any law for the time being in force.]
38a. Inserted the proviso by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019
by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(6) Subject to the provisions of clause (h) of sub-section (5) of section 17, where the
registered person fails to account for the goods or services or both in accordance with the
provisions of sub-section (1), the proper officer shall determine the amount of tax payable on the
goods or services or both that are not accounted for, as if such goods or services or both had been
supplied by such person and the provisions of section 73 or section 74, as the case may be, shall,
mutatis mutandis, apply for determination of such tax.
39[Sec.36. Period of retention of accounts.
Every registered person required to keep and maintain books of account or other records
in accordance with the provisions of sub-section (1) of section 35 shall retain them until the expiry
of seventy-two months from the due date of furnishing of annual return for the year pertaining to
such accounts and records:
Provided that a registered person, who is a party to an appeal or revision or any other
proceedings before any Appellate Authority or Revisional Authority or Appellate Tribunal or
court, whether filed by him or by the Commissioner, or is under investigation for an offence
under Chapter XIX, shall retain the books of account and other records pertaining to the subject
matter of such appeal or revision or proceedings or investigation for a period of one year after
final disposal of such appeal or revision or proceedings or investigation, or for the period
specified above, whichever is later.
39.Sec.36 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
www.taxguru.in
CHAPTER IX
RETURNS
40[Sec.37. Furnishing details of outwards supplies.
(1) Every registered person, other than an Input Service Distributor, a non-resident taxable
person and a person paying tax under the provisions of section 10 or section 51 or section 52, shall
furnish, electronically, in such form and manner as may be prescribed, the details of outward
supplies of goods or services or both effected during a tax period on or before the tenth day of the
month succeeding the said tax period and such details shall be communicated to the recipient of
the said supplies within such time and in such manner as may be prescribed:
Provided that the registered person shall not be allowed to furnish the details of outward
supplies during the period from the eleventh day to the fifteenth day of the month succeeding the
tax period:
Provided further that the Commissioner may, for reasons to be recorded in writing, by
notification, extend the time limit for furnishing such details for such class of taxable persons as
may be specified therein:
Provided also that any extension of time limit notified by the Commissioner of State tax or
Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
40.Sec.37 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Every registered person who has been communicated the details under sub-section (3)
of section 38 or the details pertaining to inward supplies of Input ServiceDistributor under sub-
section (4) of section 38, shall either accept or reject the details so communicated, on or before the
seventeenth day, but not before the fifteenth day, of the month succeeding the tax period and the
details furnished by him under sub-section (1) shall stand amended accordingly.
www.taxguru.in
(3) Any registered person, who has furnished the details under sub-section (1) for any tax
period and which have remained unmatched under section 42 or section 43, shall,upon discovery
of any error or omission therein, rectify such error or omission in such manner as may be
prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on
account of such error or omission, in the return to be furnished for such tax period:
Provided that no rectification of error or omission in respect of the details furnished under
sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of
September following the end of the financial year to which such details pertain, or furnishing of
the relevant annual return, whichever is earlier. 40a[ Provided further that the rectification of error or omission in respect of the details furnished
under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under subsection (1) for the month of March,
2019 or for the quarter January, 2019 to March, 2019. ]
40a. Inserted Proviso Vide Order. No.2/2018-CT, dt.31st Dec’ 2018 ( the CGST ( Second Removal of Difficulties) Order, 2018.
Explanation. – For the purposes of this Chapter, the expression “details of outward
supplies” shall include details of invoices, debit notes, credit notes and revised invoices issued in
relation to outward supplies made during any tax period.
41[Sec.38. Furnishing details of inward supplies.
(1) Every registered person, other than an Input Service Distributor or a non-resident taxable
person or a person paying tax under the provisions of section 10 or section 51 or section 52, shall
verify, validate, modify or delete, if required, the details relating to outward supplies and credit or
debit notes communicated under sub-section (1) of section 37 to prepare the details of his inward
supplies and credit or debit notes and may include therein, the details of inward supplies and credit
or debit notes received by him in respect of such supplies that have not been declared by the
supplier under sub-section (1) of section 37.
41.Sec.38 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Every registered person, other than an Input Service Distributor or a non-resident
taxable person or a person paying tax under the provisions of section 10 or section 51 or section
52, shall furnish, electronically, the details of inward supplies of taxable goods or services or both,
including inward supplies of goods or services or both on which the tax is payable on reverse
charge basis under this Act and inward supplies of goods or services or both taxable under the
Integrated Goods and Services Tax Act or on which integrated goods and services tax is payable
under section 3 of the Customs Tariff Act, 1975 (51 of 1975), and credit or debit notes received in
respect of such supplies during a tax period after the tenth day but on or before the fifteenth day
of the month succeeding the tax period in such form and manner as may be prescribed:
www.taxguru.in
Provided that the Commissioner may, for reasons to be recorded in writing, by notification,
extend the time limit for furnishing such details for such class of taxable persons as may be
specified therein:
Provided further that any extension of time limit notified by the Commissioner of State tax
or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
(3) The details of supplies modified, deleted or included by the recipient and furnished
under sub-section (2) shall be communicated to the supplier concerned in such manner and within
such time as may be prescribed.
(4) The details of supplies modified, deleted or included by the recipient in the return
furnished under sub-section (2) or sub-section (4) of section 39 shall be communicated to the
supplier concerned in such manner and within such time as may be prescribed.
(5) Any registered person, who has furnished the details under sub-section (2) for any tax
period and which have remained unmatched under section 42 or section 43, shall, upon discovery
of any error or omission therein, rectify such error or omission in the tax period during which such
error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest,
if any, in case there is a short payment of tax on account of such error or omission, in the return to
be furnished for such tax period:
Provided that no rectification of error or omission in respect of the details furnished under
sub-section (2) shall be allowed after furnishing of the return under section 39 for the month of
September following the end of the financial year to which such details pertain, or furnishing of
the relevant annual return, whichever is earlier.
42[Sec.39. Furnishing of returns.
(1) Every registered person, other than an Input Service Distributor or a non-resident taxable
person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall,
for every calendar month or part thereof, furnish, 42a[ in such form, manner and within such time
as may be prescribed ] a return, electronically, of inward and outward supplies of goods or services
or both, input tax credit availed, tax payable, tax paid and such other particulars as may be
prescribed, 42b[xxxx]
42c[Provided that the Government may, on the recommendations of the Council, notify certain
classes of registered persons who shall furnish return for every quarter or part thereof, subject to
such conditions and safeguards as may be specified therein.; ]
42.Sec.39 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
42a. Subs. for the words “in such form and manner as may be prescribed” by the CGST (Amendment) Act,2018, (No.31 of
2018), Dt.30.08.2018, w.e.f. yet to be notified
42b. Omitted for the words “on or before the twentieth day of the month succeeding such calendar month or part
thereof.” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018, w.e.f. yet to be notified
www.taxguru.in
42c. Inserted the proviso by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018, w.e.f. yet to be notified
(2) A registered person paying tax under the provisions of section 10 shall, for each quarter
or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of
turnover in the State or Union territory, inward supplies of goods or services or both, tax payable
and tax paid within eighteen days after the end of such quarter.
(3) Every registered person required to deduct tax at source under the provisions of section
51 shall furnish, in such form and manner as may be prescribed, a return, electronically,for the
month in which such deductions have been made within ten days after the end of such month.
(4) Every taxable person registered as an Input Service Distributor shall, for every calendar
month or part thereof, furnish, in such form and manner as may be prescribed, a return,
electronically, within thirteen days after the end of such month.
(5) Every registered non-resident taxable person shall, for every calendar month or part
thereof, furnish, in such form and manner as may be prescribed, a return, electronically, within
twenty days after the end of a calendar month or within seven days after the last day of the period
of registration specified under sub-section (1) of section 27, whichever isearlier.
(6) The Commissioner may, for reasons to be recorded in writing, by notification, extend
the time limit for furnishing the returns under this section for such class of registered persons as
may be specified therein:
Provided that any extension of time limit notified by the Commissioner of State tax or
Union territory tax shall be deemed to be notified by the Commissioner.
(7) Every registered person, who is required to furnish a return under sub-section (1) or
sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as
per such return not later than the last date on which he is required to furnish such return.
42d[ Provided that the Government may, on the recommendations of the Council, notify
certain classes of registered persons who shall pay to the Government the tax due or part thereof
as per the return on or before the last date on which he is required to furnish such return, subject
to such conditions and safeguards as may be specified therein.; ]
42d. Inserted the proviso by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018, w.e.f. yet to be notified
(8) Every registered person who is required to furnish a return under sub-section (1) or sub-
section (2) shall furnish a return for every tax period whether or not any supplies of goods or
services or both have been made during such tax period.
(9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing
a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section
www.taxguru.in
(5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit,
inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect
particulars42d[ in such form and manner as may be prescribed ]subject to payment of interest under
this Act:
42d. Subs. for the words “in the return to be furnished for the month or quarter during which such omission or
incorrect particulars are noticed,” by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018, w.e.f. yet to be
notified
Provided that no such rectification of any omission or incorrect particulars shall be allowed
after the due date for furnishing of return for the month of September or second quarter following 42e [ the end of the financial year to which such details pertain ] or the actual date of furnishing of
relevant annual return, whichever is earlier.
42e. Subs for the words “the end of the financial year” by the CGST (Amendment) Act,2018, (No.31 of 2018),
Dt.30.08.2018, w.e.f. yet to be notified
(10) A registered person shall not be allowed to furnish a return for a tax period if thereturn
for any of the previous tax periods has not been furnished by him.
43[Sec.40. First return.
Every registered person who has made outward supplies in the period between the date on
which he became liable to registration till the date on which registration has been granted shall
declare the same in the first return furnished by him after grant of registration.
43.Sec.40 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
44[Sec.41. Claim of input tax credit and provisional acceptance thereof.
(1) Every registered person shall, subject to such conditions and restrictions as may be
prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his return and
such amount shall be credited on a provisional basis to his electronic credit ledger.
44.Sec.41 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The credit referred to in sub-section (1) shall be utilised only for payment of self
assessed output tax as per the return referred to in the said sub-section.
45[Sec.42. Matching, reversal and reclaim of input tax credit.
(1) The details of every inward supply furnished by a registered person (hereafter in this
section referred to as the “recipient”) for a tax period shall, in such manner and within such time
as may be prescribed, be matched––
(a) with the corresponding details of outward supply furnished by the
corresponding registered person (hereafter in this section referred to as the “supplier”) in
his valid return for the same tax period or any preceding tax period;
www.taxguru.in
(b) with the integrated goods and services tax paid under section 3 of the Customs
Tariff Act, 1975 (51 of 1975) in respect of goods imported by him; and
(c) for duplication of claims of input tax credit.
45.Sec.42 except the proviso to sub-sec. (9)***, came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The claim of input tax credit in respect of invoices or debit notes relating to inward
supply that match with the details of corresponding outward supply or with the integrated goods
and services tax paid under section 3 of the Customs Tariff Act, 1975 (51 of 1975) in respect of
goods imported by him shall be finally accepted and such acceptance shall be communicated, in
such manner as may be prescribed, to the recipient.
(3) Where the input tax credit claimed by a recipient in respect of an inward supply is in
excess of the tax declared by the supplier for the same supply or the outward supply is not declared
by the supplier in his valid returns, the discrepancy shall be communicated to both such persons in
such manner as may be prescribed.
(4) The duplication of claims of input tax credit shall be communicated to the recipient in
such manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under sub-section
(3) and which is not rectified by the supplier in his valid return for the month in which discrepancy
is communicated shall be added to the output tax liability of the recipient, in such manner as may
be prescribed, in his return for the month succeeding the month in which the discrepancy is
communicated.
(6) The amount claimed as input tax credit that is found to be in excess on account of
duplication of claims shall be added to the output tax liability of the recipient in his return for the
month in which the duplication is communicated.
(7) The recipient shall be eligible to reduce, from his output tax liability, the amount added
under sub-section (5), if the supplier declares the details of the invoice or debit note in his valid
return within the time specified in sub-section (9) of section 39.
(8) A recipient in whose output tax liability any amount has been added under sub-section
(5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of
section 50 on the amount so added from the date of availing of credit till the corresponding
additions are made under the said sub-sections.
(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest
paid under sub-section (8) shall be refunded to the recipient by crediting the amount in the
corresponding head of his electronic cash ledger in such manner as may be prescribed:
***Provided that the amount of interest to be credited in any case shall not exceed the
amount of interest paid by the supplier.
www.taxguru.in
*** Sec.42 except the proviso to sub-sec. (9)***, came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(10) The amount reduced from the output tax liability in contravention of the provisions of
sub-section (7) shall be added to the output tax liability of the recipient in his return for the month
in which such contravention takes place and such recipient shall be liable to pay interest on the
amount so added at the rate specified in sub-section (3) ofsection 50.
46[Sec.43. Matching reversal and reclaim of reduction in output tax liability.
(1) The details of every credit note relating to outward supply furnished by a registered
person (hereafter in this section referred to as the “supplier”) for a tax period shall, in such manner
and within such time as may be prescribed, be matched––
(a) with the corresponding reduction in the claim for input tax credit by the corresponding
registered person (hereafter in this section referred to as the “recipient”) in his valid return for the
same tax period or any subsequent tax period; and
(b) for duplication of claims for reduction in output tax liability.
(2) The claim for reduction in output tax liability by the supplier that matches with the
corresponding reduction in the claim for input tax credit by the recipient shall be finally accepted
and communicated, in such manner as may be prescribed, to the supplier.
(3) Where the reduction of output tax liability in respect of outward supplies exceeds the
corresponding reduction in the claim for input tax credit or the corresponding credit note is not
declared by the recipient in his valid returns, the discrepancy shall be communicated to both such
persons in such manner as may be prescribed.
(4) The duplication of claims for reduction in output tax liability shall be communicated
to the supplier in such manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under sub-section
(3) and which is not rectified by the recipient in his valid return for the month in which discrepancy
is communicated shall be added to the output tax liability of the supplier, in such manner as may
be prescribed, in his return for the month succeeding the month in which the discrepancy is
communicated.
(6) The amount in respect of any reduction in output tax liability that is found to be on
account of duplication of claims shall be added to the output tax liability of the supplier in his
return for the month in which such duplication is communicated.
(7) The supplier shall be eligible to reduce, from his output tax liability, the amount added
under sub-section (5) if the recipient declares the details of the credit note in his valid return within
the time specified in sub-section (9) of section 39.
www.taxguru.in
(8) A supplier in whose output tax liability any amount has been added under sub-section
(5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of
section 50 in respect of the amount so added from the date of such claim for reduction in the output
tax liability till the corresponding additions are made under the said sub-sections.
(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest
paid under sub-section (8) shall be refunded to the supplier by crediting the amount in the
corresponding head of his electronic cash ledger in such manner as may be prescribed:
***Provided that the amount of interest to be credited in any case shall not exceed the
amount of interest paid by the recipient.***
***Sec.43 except the proviso to sub-sec.(9)*** came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(10) The amount reduced from output tax liability in contravention of the provisions of
sub-section (7) shall be added to the output tax liability of the supplier in his return for the month
in which such contravention takes place and such supplier shall be liable to pay interest on the
amount so added at the rate specified in sub-section (3) of section 50.
46a [Sec.43A. Procedure for furnishing return and availing input tax credit. (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or
section 38, every registered person shall in the returns furnished under sub-section (1) of section
39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the
procedure for availing of input tax credit by the recipient and verification thereof shall be such as
may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on the common
portal, for the purposes of availing input tax credit by the recipient shall be such as may be
prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not furnished under
sub-section (3) shall be such as may be prescribed and such procedure may include the maximum
amount of the input tax credit which can be so availed, not exceeding twenty percent of the input
tax credit available, on the basis of details furnished by the suppliers under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details
have been furnished by the supplier under sub-section (3) shall be deemed
to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally
liable to pay or to pay the input tax credit availed, as the case may be, in
relation to outward supplies for which the details have been furnished under
sub-section (3) or sub-section (4) but return thereof has not been furnished.
www.taxguru.in
(7) For the purposes of sub-section (6), the recovery shall be made in such
manner as may be prescribed and such procedure may provide for non-
recovery of an amount of tax or input tax credit wrongly availed not
exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to
outward supplies, the details of which can be furnished under sub-section
(3) by a registered person,-
(i) Within six months of taking registration;
(ii) Who has defaulted in payment of tax and where such default has containud
for more than two months from the due date of payment of such defaulted
amount,
shall be such as may be prescribed.]
46a. Inserted the “New Sec.43A….’’ by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018, w.e.f. yet to
be notified
47[Sec.44. Annual return.
(1) Every registered person, other than an Input Service Distributor, a personpaying tax
under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall
furnish an annual return for every financial year electronically in such form and manner as may be
prescribed on or before the thirty-first day of December following the end of such financial year.
47.Sec.44 came into force on 01-07-2017,videNoti. No.9/2017-CT, dt.28-06-2017.
(2) Every registered person who is required to get his accounts audited in accordance with
the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under
sub-section (1) along with a copy of the audited annual accounts and are conciliation statement,
reconciling the value of supplies declared in the return furnished for the financial year with the
audited annual financial statement, and such other particularsas may be prescribed.
47a [ Explanation. - For the purposes of this section, it is hereby declared that the annual return
for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the 47b [
30th June 2019 ]
47a . Inserted Explanation vide Order. No.1/2018-CT, dt.11th Dec’ 2018 ( the CGST (Removal of
Difficulties) Order, 2018. 47b. Subs. The figures, letters and word “31st March, 2019” vide Order. No.3/2018-CT, dt.31st Dec’
2018 ( the CGST ( Third Removal of Difficulties) Order, 2018.
48[Sec.45. Final return.
Every registered person who is required to furnish a return under sub-section (1) of section
39 and whose registration has been cancelled shall furnish a final return within three months of the
www.taxguru.in
date of cancellation or date of order of cancellation, whichever is later, in such form and manner
as may be prescribed.
48.Sec.45 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28.06.2017 49[Sec.46. Notice to return defaulters.
Where a registered person fails to furnish a return under section 39 or section 44 or section
45, a notice shall be issued requiring him to furnish such return within fifteen days in such form
and manner as may be prescribed.
49.Sec.46 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
50[Sec.47. Levy of late fee.
(1) Any registered person who fails to furnish the details of outward or inward supplies
required under section 37 or section 38 or returns required under section 39 or section 45 by the
due date shall pay a late fee of one hundred rupees for every day during which such failure
continues subject to a maximum amount of five thousand rupees.
50.Sec.47 came into force on 01-07-2017, - N.No.9/2017-CT, dt.28-06-2017.
(2) Any registered person who fails to furnish the return required under section 44 by the
due date shall be liable to pay a late fee of one hundred rupees for every day during which such
failure continues subject to a maximum of an amount calculated at a quarter per cent of his turnover
in the State or Union territory.
51[Sec.48. Goods and service tax practitioners.
(1) The manner of approval of goods and services tax practitioners, their eligibility
conditions, duties and obligations, manner of removal and other conditions relevant for their
functioning shall be such as may be prescribed.
51.Sec.48 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) A registered person may authorise an approved goods and services tax practitioner to
furnish the details of outward supplies under section 37, the details of inward supplies under
section 38 and the return under section 39 or section 44 or section 45 51a [ and to perform such
other functions ] in such manner as may be prescribed.
51a. Inserted the word and figures by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
www.taxguru.in
(3) Notwithstanding anything contained in sub-section (2), the responsibility for
correctness of any particulars furnished in the return or other details filed by the goods and services
tax practitioners shall continue to rest with the registered person on whose behalf such return and
details are furnished.
CHAPTER X
PAYMENT OF TAX
52[Sec.49. Payment of tax, Interest, penalty and other amounts.
(1) Every deposit made towards tax, interest, penalty, fee or any other amount by a person
by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real
Time Gross Settlement or by such other mode and subject to such conditions and restrictions as
may be prescribed, shall be credited to the electronic cash ledger of such person to be maintained
in such manner as may be prescribed.
52.Sec.49 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The input tax credit as self-assessed in the return of a registered person shall be credited
to his electronic credit ledger, in accordance with 52a [ section 41 or section 43A], to be maintained
in such manner as may be prescribed.
52a. Subs for the word and figures “section 41” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018, w.e.f. yet to be
notified
(3) The amount available in the electronic cash ledger may be used for making any payment
towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or
the rules made thereunder in such manner and subject to such conditions and within such time as
may be prescribed.
(4) The amount available in the electronic credit ledger may be used for making any
payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in
such manner and subject to such conditions and within such time as may be prescribed.
(5) The amount of input tax credit available in the electronic credit ledger of the registered
person on account of––
(a) integrated tax shall first be utilised towards payment of integrated tax and the
amount remaining, if any, may be utilised towards the payment of central tax and State tax,
or as the case may be, Union territory tax, in that order;
(b) the central tax shall first be utilised towards payment of central tax and the
amount remaining, if any, may be utilised towards the payment of integrated tax;
www.taxguru.in
(c) the State tax shall first be utilised towards payment of State tax and the amount
remaining, if any, may be utilised towards payment of integrated tax;
52b [Provided that the input ax credit on account of State tax shall be utilised towards payment of
integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;]
52b. Inserted for the proviso by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(d) the Union territory tax shall first be utilised towards payment of Union territory
tax and the amount remaining, if any, may be utilised towards payment of integrated tax;
52c [Provided that the input tax credit on account of Union territory tax shall be utilised towards
payment of integrated tax only where the balance of the input tax credit on account of central tax
is not available for payment of integrated tax;]
52c. Inserted the proviso by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(e) the central tax shall not be utilised towards payment of State tax or Union
territory tax; and
(f) the State tax or Union territory tax shall not be utilised towards payment of
central tax.
(6) The balance in the electronic cash ledger or electronic credit ledger after payment of
tax, interest, penalty, fee or any other amount payable under this Act or the rules made thereunder
may be refunded in accordance with the provisions of section 54.
(7) All liabilities of a taxable person under this Act shall be recorded and maintained in an
electronic liability register in such manner as may be prescribed.
(8) Every taxable person shall discharge his tax and other dues under this Act or the rules
made thereunder in the following order, namely: ––
(a) self-assessed tax, and other dues related to returns of previous tax periods;
(b) self-assessed tax, and other dues related to the return of the current tax period;
(c) any other amount payable under this Act or the rules made thereunder including
the demand determined under section 73 or section 74.
(9) Every person who has paid the tax on goods or services or both under this Act shall,
unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax
to the recipient of such goods or services or both.
www.taxguru.in
Explanation. – For the purposes of this section, —
(a) the date of credit to the account of the Government in the authorized bank shall
be deemed to be the date of deposit in the electronic cash ledger;
(b) the expression, —
(i) “tax dues” means the tax payable under this Act and does not include
interest, fee and penalty; and
(ii) “other dues” means interest, penalty, fee or any other amount payable
under this Act or the rules made thereunder.
52d[Sec.49A. Utilisation of input tax credit subject to certain conditions.
Notwithstanding anything contained in section 49, the input tax credit on account of
central tax, State ta or Union territory tax shall be utilized towards payment of integrated tax,
central tax, State tax or Union territory tax, as the case may be, only after the input tax credit
available on account of integrated tax has first been utilized fully towards such payment.
49B. Order of utilisation of input tax credit.
Notwithstanding anything contained in this Chapter and subject to the provisions of clause
(e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations
of the Council, prescribe the order and manner of utilisation of the input tax credit on account of
integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of
any such tax.]
52d. Inserted the New Sections 49A & 49B by the CGST (Amendment) Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
53[Sec.50. Interest on delayed payment of tax. (1) Every person who is liable to pay tax in
accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or
any part thereof to the Government within the period prescribed, shall for the period for which the
tax or any part thereof remains unpaid, pay, on his own, *interest at such rate, not exceeding
eighteen percent as may be notified by the Government on the recommendations of the Council.
53.Sec.50.came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
[* 18% rate of interest by N.No. 13/2017 CT- 28-06-2017 w.e.f. 01-07-2017 ]
(2) The interest under sub-section (1) shall be calculated, in such manner as may be
prescribed, from the day succeeding the day on which such tax was due to be paid.
(3) A taxable person who makes an undue or excess claim of input tax credit under sub-
section (10) of section 42 or undue or excess reduction in output tax liability under sub-section
(10) of section 43, shall pay **interest on such undue or excess claim or on such undue or excess
reduction, as the case may be, at such rate not exceeding twenty-four percent., as may be notified
by the Government on the recommendations of the Council.
[** 24% rate of interest by N.No. 13/2017 CT- 28-06-2017 w.e.f. 01-07-2017 ]
www.taxguru.in
53a[Sec.51. Tax deduction at source.
(1) Notwithstanding anything to the contrary contained in this Act, the Government may
mandate, ––
(a) a department or establishment of the Central Government or State Government;
or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on
the recommendations of the Council, (hereafter in this section referred to as “the
deductor”), to deduct tax at the rate of one per cent. from the payment made or credited to
the supplier (hereafter in this section referred to as “the deductee”) of taxable goods or
services or both, where the total value of such supply, under a contract, exceeds two lakh
and fifty thousand rupees:
53a.Sec.51came into force on 01-10-2018, vide N.No.50/2018-CT, dt.13-09-2018.
Provided that no deduction shall be made if the location of the supplier and the place of
supply is in a State or Union territory which is different from the State or as the case may be, Union
territory of registration of the recipient.
Explanation. –– For the purpose of deduction of tax specified above, the value of supply
shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax
and cess indicated in the invoice.
(2) The amount deducted as tax under this section shall be paid to the Government by the
deductor within ten days after the end of the month in which such deduction is made, in such
manner as may be prescribed.
(3) The deductor shall furnish to the deductee a certificate mentioning therein the contract
value, rate of deduction, amount deducted, amount paid to the Government and such other
particulars in such manner as may be prescribed.
(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at
source, within five days of crediting the amount so deducted to the Government, the deductor shall
pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of
such five days period until the failure is rectified, subject to a maximum amount of five thousand
rupees.
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and
reflected in the return of the deductor furnished under sub-section (3) of section 39, in such manner
as may be prescribed.
www.taxguru.in
(6) If any deductor fails to pay to the Government the amount deducted as tax under sub-
section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50,
in addition to the amount of tax deducted.
(7) The determination of the amount in default under this section shall be made in the
manner specified in section 73 or section 74.
(8) The refund to the deductor or the deductee arising on account of excess or erroneous
deduction shall be dealt with in accordance with the provisions of section 54:
Provided that no refund to the deductor shall be granted, if the amount deducted has been
credited to the electronic cash ledger of the deductee.
53b[ Sec.52. Collection of tax at source.
(1) Notwithstanding anything to the contrary contained in this Act, every electronic
commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall
collect an amount calculated at such rate not exceeding one per cent., as may be notified by the
Government on the recommendations of the Council, of the net value of taxable supplies made
through it by other suppliers where the consideration with respect to such supplies is to be collected
by the operator.
Explanation.––For the purposes of this sub-section, the expression “net value of taxable
supplies” shall mean the aggregate value of taxable supplies of goods or services or both, other
than services notified under sub-section (5) of section 9, made during any month by all registered
persons through the operator reduced by the aggregate value of taxable supplies returned to the
suppliers during the said month. 53b. Sec.52 came into force on 01-10-2018, by N.No.51/2018-CT, dt.13-09-2018.
(2) The power to collect the amount specified in sub-section (1) shall be without prejudice
to any other mode of recovery from the operator.
(3) The amount collected under sub-section (1) shall be paid to the Government by the
operator within ten days after the end of the month in which such collection is made, in such
manner as may be prescribed.
(4) Every operator who collects the amount specified in sub-section (1) shall furnish a
statement, electronically, containing the details of outward supplies of goods or services or both
effected through it, including the supplies of goods or services or both returned through it, and the
amount collected under sub-section (1) during a month, in such form and manner as may be
prescribed, within ten days after the end of such month.
www.taxguru.in
53c [ Explanation: - For the purposes of this sub-section, it is hereby declared that the due date for furnishing the said statement for the months of October, November and December, 2018 shall be the 31st January, 2019. ]
53c. Inserted Explanation vide Order. No.4/2018-CT, dt.31st Dec’ 2018 ( the CGST ( Fourth Removal of Difficulties) Order, 2018.
(5) Every operator who collects the amount specified in sub-section (1) shall furnish an
annual statement, electronically, containing the details of outward supplies of goods or services or
both effected through it, including the supplies of goods or services or both returned through it,
and the amount collected under the said sub-section during the financial year, in such form and
manner as may be prescribed, before the thirty first day of December following the end of such
financial year.
(6) If any operator after furnishing a statement under sub-section (4) discovers any
omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or
enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars
in the statement to be furnished for the month during which such omission or incorrect particulars
are noticed, subject to payment of interest, as specified in sub-section (1) of section 50:
Provided that no such rectification of any omission or incorrect particulars shall be allowed
after the due date for furnishing of statement for the month of September following the end of the
financial year or the actual date of furnishing of the relevant annual statement, whichever is earlier.
(7) The supplier who has supplied the goods or services or both through the operator shall
claim credit, in his electronic cash ledger, of the amount collected and reflected in the statement
of the operator furnished under sub-section (4), in such manner as may be prescribed.
(8) The details of supplies furnished by every operator under sub-section (4) shall be
matched with the corresponding details of outward supplies furnished by the concerned supplier
registered under this Act in such manner and within such time as may be prescribed.
(9) Where the details of outward supplies furnished by the operator under sub-section (4)
do not match with the corresponding details furnished by the supplier under53c[ section 37 or
section 39 ], the discrepancy shall be communicated to both persons in such manner and within
such time as may be prescribed.
53c. Subs. for the word and figures “section 37” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(10) The amount in respect of which any discrepancy is communicated under sub-section
(9) and which is not rectified by the supplier in his valid return or the operator inhis statement for
the month in which discrepancy is communicated, shall be added to the output tax liability of the
said supplier, where the value of outward supplies furnished by the operator is more than the value
of outward supplies furnished by the supplier, in his return for the month succeeding the month in
which the discrepancy is communicated in such manner as may be prescribed.
www.taxguru.in
(11) The concerned supplier, in whose output tax liability any amount has been added under
sub-section (10), shall pay the tax payable in respect of such supply along with interest, at the rate
specified under sub-section (1) of section 50 on the amount so addedfrom the date such tax was
due till the date of its payment.
(12) Any authority not below the rank of Deputy Commissioner may serve a notice, either
before or during the course of any proceedings under this Act, requiring the operator to furnish
such details relating to—
(a) supplies of goods or services or both effected through such operator during any
period; or
(b) stock of goods held by the suppliers making supplies through such operator in
the godowns or warehouses, by whatever name called, managed by such operator and
declared as additional places of business by such suppliers,
as may be specified in the notice.
(13) Every operator on whom a notice has been served under sub-section (12) shall furnish
the required information within fifteen working days of the date of service of such notice.
(14) Any person who fails to furnish the information required by the notice served under
sub-section (12) shall, without prejudice to any action that may be taken under section 122, be
liable to a penalty which may extend to twenty-five thousand rupees.
Explanation.—For the purposes of this section, the expression “concerned supplier”shall
mean the supplier of goods or services or both making supplies through the operator.
54[Sec.53. Transfer of input tax credit.
On utilisation of input tax credit availed under this Act for payment of tax dues under the
Integrated Goods and Services Tax Act in accordance with the provisions of sub-section (5) of
section 49, as reflected in the valid return furnished under sub-section (1) of section 39, the amount
collected as central tax shall stand reduced by an amount equal to such credit so utilised and the
Central Government shall transfer an amount equal to the amount so reduced from the central tax
account to the integrated tax account in such manner and within such time as may be prescribed.
54.Sec.53 came into force on 01-07-2017, vide N. No.9/2017-CT, dt.28-06-2017.
CHAPTER XI
REFUNDS
55[Sec.54. Refund of tax.
(1) Any person claiming refund of any tax and interest, if any, paid on such tax or any other
amount paid by him, may make an application before the expiry of two years from the relevant
date in such form and manner as may be prescribed:
www.taxguru.in
55.Sec.54 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
Provided that a registered person, claiming refund of any balance in the electronic cash
ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund
in the return furnished under section 39 in such manner as may be prescribed.
(2) A specialised agency of the United Nations Organisation or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and Immunities)Act,
1947 (46 of 1947), Consulate or Embassy of foreign countries or any other person or class of
persons, as notified under section 55, entitled to a refund of tax paid by it on inward supplies of
goods or services or both, may make an application for such refund, in such form and manner
asmay be prescribed, before the expiry of six months from the last day of the quarter in whichsuch
supply was received.
(3) Subject to the provisions of sub-section (10), a registered person may claim refund of
any unutilised input tax credit at the end of any tax period:
Provided that no refund of unutilised input tax credit shall be allowed in cases other than–
(i) zero rated supplies made without payment of tax;
(ii) where the credit has accumulated on account of rate of tax on inputs being
higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies),
except supplies of goods or services or both as may be notified by the Government on the
recommendations of the Council:
Provided further that no refund of unutilised input tax credit shall be allowed in cases where
the goods exported out of India are subjected to export duty:
Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or
services or both avails of drawback in respect of central tax or claims refund of the integrated tax
paid on such supplies.
(4) The application shall be accompanied by—
(a) such documentary evidence as may be prescribed to establish that a refund is
due to the applicant; and
(b) such documentary or other evidence (including the documents referred to in
section 33) as the applicant may furnish to establish that the amount of tax and interest, if
any, paid on such tax or any other amount paid in relation to which such refund is claimed
was collected from, or paid by, him and the incidence of such tax and interest had not been
passed on to any other person:
www.taxguru.in
Provided that where the amount claimed as refund is less than two lakh rupees, it shall not
be necessary for the applicant to furnish any documentary and other evidences but he may file a
declaration, based on the documentary or other evidences available with him, certifying that the
incidence of such tax and interest had not been passed on to any other person.
(5) If, on receipt of any such application, the proper officer is satisfied that the whole or
part of the amount claimed as refund is refundable, he may make an order accordingly and the
amount so determined shall be credited to the Fund referred to in section 57.
(6) Notwithstanding anything contained in sub-section (5), the proper officer may, in the
case of any claim for refund on account of zero-rated supply of goods or services or both made by
registered persons, other than such category of registered persons as may be notified by the
Government on the recommendations of the Council, refund on aprovisional basis, ninety per cent.
of the total amount so claimed, excluding the amount of input tax credit provisionally accepted, in
such manner and subject to such conditions, limitations and safeguards as may be prescribed and
thereafter make an order under sub-section (5) for final settlement of the refund claim after due
verification of documents furnished by the applicant.
(7) The proper officer shall issue the order under sub-section (5) within sixty days from the
date of receipt of application complete in all respects.
(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall,
instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to—
(a) refund of tax paid on 55a[export] of goods or services or both or on inputs or
input services used in making such 55a[exports];
55a.Subs. for the words “zero-rated supplies” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, either wholly or partially,
and for which invoice has not been issued, or where a refund voucher has been issued;
(d) refund of tax in pursuance of section 77;
(e) the tax and interest, if any, or any other amount paid by the applicant, if he had
not passed on the incidence of such tax and interest to any other person; or
(f) the tax or interest borne by such other class of applicants as the Government
may, on the recommendations of the Council, by notification, specify.
(9) Notwithstanding anything to the contrary contained in any judgment, decree, order or
direction of the Appellate Tribunal or any court or in any other provisions of this Act or the rules
www.taxguru.in
made thereunder or in any other law for the time being in force, no refund shall be made except in
accordance with the provisions of sub-section (8).
(10) Where any refund is due under sub-section (3) to a registered person who has defaulted
in furnishing any return or who is required to pay any tax, interest or penalty, which
has not been stayed by any court, Tribunal or Appellate Authority by the specified date, the proper
officer may—
(a) withhold payment of refund due until the said person has furnished the return
or paid the tax, interest or penalty, as the case may be;
(b) deduct from the refund due, any tax, interest, penalty, fee or any other amount
which the taxable person is liable to pay but which remains unpaid under this Act or under
the existing law.
Explanation.––For the purposes of this sub-section, the expression “specified date”shall
mean the last date for filing an appeal under this Act.
(11) Where an order giving rise to a refund is the subject matter of an appeal or further
proceedings or where any other proceedings under this Act is pending and the Commissioneris of
the opinion that grant of such refund is likely to adversely affect the revenue in the said appeal or
other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable
person an opportunity of being heard, withhold the refund till such time as he may determine.
(12) Where a refund is withheld under sub-section (11), the taxable person shall,
notwithstanding anything contained in section 56, be entitled to interest** at such rate not
exceeding six per cent. as may be notified on the recommendations of the Council, if as a result of
the appeal or further proceedings he becomes entitled to refund. [** 6% rate of interest by N.No. 13/2017 CT- 28-06-2017 w.e.f. 01-07-2017 ]
(13) Notwithstanding anything to the contrary contained in this section, the amount of
advance tax deposited by a casual taxable person or a non-resident taxable person under sub-
section (2) of section 27, shall not be refunded unless such person has, in respect of the entire
period for which the certificate of registration granted to him had remained in force, furnished all
the returns required under section 39.
(14) Notwithstanding anything contained in this section, no refund under sub-section (5)
or sub-section (6) shall be paid to an applicant, if the amount is less than one thousand rupees.
Explanation.—For the purposes of this section,––
(1) “refund” includes refund of tax paid on zero-rated supplies of goods or services or both
or on inputs or input services used in making such zero-rated supplies, or refund of tax on the
supply of goods regarded as deemed exports, or refund of unutilised input tax credit as provided
under sub-section (3).
(2) “relevant date” means—
www.taxguru.in
(a) in the case of goods exported out of India where a refund of tax paid is available
in respect of goods themselves or, as the case may be, the inputs or input services used in
such goods,––
(i) if the goods are exported by sea or air, the date on which the ship or the
aircraft in which such goods are loaded, leaves India; or
(ii) if the goods are exported by land, the date on which such goods pass the
frontier; or
(iii) if the goods are exported by post, the date of despatch of goods by the
Post Office concerned to a place outside India;
(b) in the case of supply of goods regarded as deemed exports where a refund of
tax paid is available in respect of the goods, the date on which the return relating to such
deemed exports is furnished;
(c) in the case of services exported out of India where a refund of tax paid is
available in respect of services themselves or, as the case may be, the inputs or input
services used in such services, the date of––
(i) receipt of payment in convertible foreign exchange,55b[ or in Indian
rupees wherever permitted by the Reserve Bank of India ] where the supply of
services had been completed prior to the receipt of such payment; or 55b.Inserted the words by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(ii) issue of invoice, where payment for the services had been received in advance
prior to the date of issue of the invoice;
(d) in case where the tax becomes refundable as a consequence of judgment, decree, order
or direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication
of such judgment, decree, order or direction;
55c [ (e) in the case of refund unutilised input tax credit under clause (ii) of the first proviso
to sub-section (3), the due date for furnishing of return under section 39 for the period in which
such claim for refund arises;]
55c.Subs. for the sub clause “(e) in the case of refund of unutilised input tax credit undersub-section (3), the end of the financial year in
which such claim for refundarises;” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(f) in the case where tax is paid provisionally under this Act or the rules made thereunder,
the date of adjustment of tax after the final assessment thereof;
(g) in the case of a person, other than the supplier, the date of receipt of goods or services
or both by such person; and
(h) in any other case, the date of payment of tax.
www.taxguru.in
56[Sec.55. Refund in certain cases.
The Government may, on the recommendations of the Council, by notification, specify any
specialised agency of the United Nations Organisation or any Multilateral Financial Institution and
Organisation notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of
1947), Consulate or Embassy of foreign countries and any other person or class of persons as may
be specified in this behalf, who shall, subject to such conditions and restrictions as may be
prescribed, be entitled to claim a refund of taxes paid on the notified supplies of goods or services
or both received by them.
56.Section 54 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017
57[Sec.56. Interest on delayed refunds.
If any tax ordered to be refunded under sub-section (5) of section 54 to any applicant is not
refunded within sixty days from the date of receipt of application under sub-section (1) of that
section, **interest at such rate not exceeding six per cent. as may be specified in the notification
issued by the Government on the recommendations of the Council shall be payable in respect of
such refund from the date immediately after the expiry of sixty days from the date of receipt of
application under the said sub-section till the date of refund of such tax:
57.Sec.56 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
[** 6% rate of interest by N.No. 13/2017 CT- 28-06-2017 w.e.f. 01-07-2017 ]
Provided that where any claim of refund arises from an order passed by an adjudicating
authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the
same is not refunded within sixty days from the date of receipt of application filed consequent to
such order, **interest at such rate not exceeding nine per cent. as may be notified by the
Government on the recommendations of the Council shall be payable in respect of such refund
from the date immediately after the expiry of sixty days from the date of receipt of application till
the date of refund. [** 9% rate of interest by N.No. 13/2017 CT- 28-06-2017 w.e.f. 01-07-2017 ]
Explanation.––For the purposes of this section, where any order of refund is made by an
Appellate Authority, Appellate Tribunal or any court against an order of the proper officer under
sub-section (5) of section 54, the order passed by the Appellate Authority, Appellate Tribunal or
by the court shall be deemed to be an order passed under the said sub-section (5).
58[Sec.57. Consumer Welfare Fund.
The Government shall constitute a Fund, to be called the Consumer Welfare Fund and there
shall be credited to the Fund,—
(a) the amount referred to in sub-section (5) of section 54;
(b) any income from investment of the amount credited to the Fund; and
(c) such other monies received by it, in such manner as may be prescribed.
58. Sec 57 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2014.
www.taxguru.in
59[Sec.58. Utilisation of Funds.
(1) All sums credited to the Fund shall be utilised by the Government for the welfare of
the consumers in such manner as may be prescribed.
59.Sec.58 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The Government or the authority specified by it shall maintain proper and separate
account and other relevant records in relation to the Fund and prepare an annual statement of
accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-
General of India.
CHAPTER XII
ASSESSMENT
60[Sec.59. Self-assessment.
Every registered person shall self-assess the taxes payable under this Act and furnish a
return for each tax period as specified under section 39.
60. Sec.59 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
61[Sec.60. Provisional Assessment.
(1) Subject to the provisions of sub-section (2), where the taxable person is unable to
determine the value of goods or services or both or determine the rate of tax applicable thereto, he
may request the proper officer in writing giving reasons for payment of tax on aprovisional basis
and the proper officer shall pass an order, within a period not later than ninety days from the date
of receipt of such request, allowing payment of tax on provisionalbasis at such rate or on such
value as may be specified by him.
61.Sec.60 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The payment of tax on provisional basis may be allowed, if the taxable person executes
a bond in such form as may be prescribed, and with such surety or security as the proper officer
may deem fit, binding the taxable person for payment of the difference between the amount of tax
as may be finally assessed and the amount of tax provisionally assessed.
(3) The proper officer shall, within a period not exceeding six months from the date of the
communication of the order issued under sub-section (1), pass the final assessment order after
taking into account such information as may be required for finalizing the assessment:
www.taxguru.in
Provided that the period specified in this sub-section may, on sufficient cause being shown
and for reasons to be recorded in writing, be extended by the Joint Commissioner or Additional
Commissioner for a further period not exceeding six months and by the Commissioner for such
further period not exceeding four years.
(4) The registered person shall be liable to pay interest on any tax payable on the supply of
goods or services or both under provisional assessment but not paid on the due date specified under
sub-section (7) of section 39 or the rules made thereunder, at the rate specified under sub-section
(1) of section 50, from the first day after the due date of payment of tax in respect of the said supply
of goods or services or both till the date of actual payment, whether such amount is paid before or
after the issuance of order for final assessment.
(5) Where the registered person is entitled to a refund consequent to the order of final
assessment under sub-section (3), subject to the provisions of sub-section (8) of section 54, interest
shall be paid on such refund as provided in section 56.
62[Sec.61. Security of returns.
(1) The proper officer may scrutinize the return and related particulars furnished by the
registered person to verify the correctness of the return and inform him of the discrepancies
noticed, if any, in such manner as may be prescribed and seek his explanation thereto.
62.Sec.61 came into force on 01-07-2017, vide N.No.9/2017-CT,dt28-06-2017.
(2) In case the explanation is found acceptable, the registered person shall be informed
accordingly and no further action shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within a period of thirty days of being
informed by the proper officer or such further period as may be permitted by him or where the
registered person, after accepting the discrepancies, fails to take the corrective measure in his
return for the month in which the discrepancy is accepted, the proper officer may initiate
appropriate action including those under section 65 or section 66 or section 67, or proceed to
determine the tax and other dues under section 73 or section 74.
63[Sec.62. Assessment of non-filers of returns.
(1) Notwithstanding anything to the contrary contained in section 73 or section 74,where a
registered person fails to furnish the return under section 39 or section 45, even after the service
of a notice under section 46, the proper officer may proceed to assess the taxliability of the said
person to the best of his judgment taking into account all the relevant material which is available
or which he has gathered and issue an assessment order within aperiod of five years from the date
specified under section 44 for furnishing of the annualreturn for the financial year to which the tax
not paid relates.
63.Sec.62 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Where the registered person furnishes a valid return within thirty days of the service of
the assessment order under sub-section (1), the said assessment order shall be deemed to have been
withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for
payment of late fee under section 47 shall continue.
www.taxguru.in
64[Sec.63. Assessment of unregistered persons.
Notwithstanding anything to the contrary contained in section 73 or section74, where a
taxable person fails to obtain registration even though liable to do so or whose registration has
been cancelled under sub-section (2) of section 29 but who was liable to pay tax, the proper officer
may proceed to assess the tax liability of such taxable person to the best of his judgment for the
relevant tax periods and issue an assessment order within a period of five years from the date
specified under section 44 for furnishing of the annual return for the financial year to which the
tax not paid relates:
Provided that no such assessment order shall be passed without giving the person an
opportunity of being heard. 64.Sec.63 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt. 28-06-2017.
65[Sec.64. Summery assessment in certain special cases.
(1) The proper officer may, on any evidence showing a tax liability of a person coming to
his notice, with the previous permission of Additional Commissioner or Joint Commissioner,
proceed to assess the tax liability of such person to protect the interest of revenue and issue an
assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely
affect the interest of revenue:
Provided that where the taxable person to whom the liability pertains is not ascertainable
and such liability pertains to supply of goods, the person in charge of such goods shall be
deemed to be the taxable person liable to be assessed and liable to pay tax and any other amount
due under this section. 65.Sec.64 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) On an application made by the taxable person within thirty days from the date of receipt
of order passed under sub-section (1) or on his own motion, if the Additional Commissioner or
Joint Commissioner considers that such order is erroneous, he may withdraw such order and follow
the procedure laid down in section 73 or section 74.
CHAPTER XIII
AUDIT
66[Sec.65. Audit by tax authorities.
(1) The Commissioner or any officer authorised by him, by way of a general or a specific
order, may undertake audit of any registered person for such period, at such frequency and in such
manner as may be prescribed.
66.Sec.65 came into force on 01-07-2017, vide Noti. No.9/2017, dt.28-06-2017.
(2) The officers referred to in sub-section (1) may conduct audit at the place of business of
the registered person or in their office.
www.taxguru.in
(3) The registered person shall be informed by way of a notice not less than fifteen working
days prior to the conduct of audit in such manner as may be prescribed.
(4) The audit under sub-section (1) shall be completed within a period of three months
from the date of commencement of the audit:
Provided that where the Commissioner is satisfied that audit in respect of such registered
person cannot be completed within three months, he may, for the reasons to be recorded in writing,
extend the period by a further period not exceeding six months.
Explanation. – For the purposes of this sub-section, the expression “commencement of
audit” shall mean the date on which the records and other documents, called for by the tax
authorities, are made available by the registered person or the actual institution of audit at the place
of business, whichever is later.
(5) During the course of audit, the authorised officer may require the registered person, —
(i) to afford him the necessary facility to verify the books of account or other
documents as he may require;
(ii) to furnish such information as he may require and render assistance for timely
completion of the audit.
(6) On conclusion of audit, the proper officer shall, within thirty days, inform the registered
person, whose records are audited, about the findings, his rights and obligations and the reasons
for such findings.
(7) Where the audit conducted under sub-section (1) results in detection of tax not paid or
short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper
officer may initiate action under section 73 or section 74.
67[Sec.66. Special Audit.
(1) If at any stage of scrutiny, inquiry, investigation or any other proceedings before him,
any officer not below the rank of Assistant Commissioner, having regard to the nature and
complexity of the case and the interest of revenue, is of the opinion that the value has not been
correctly declared or the credit availed is not within the normal limits, he may, with the prior
approval of the Commissioner, direct such registered person by a communication in writing to get
his records including books of account examined and audited by a chartered accountant or a cost
accountant as may be nominated by the Commissioner.
67.Sec.66 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
www.taxguru.in
(2) The chartered accountant or cost accountant so nominated shall, within the period of
ninety days, submit a report of such audit duly signed and certified by him to the said Assistant
Commissioner mentioning therein such other particulars as may be specified:
Provided that the Assistant Commissioner may, on an application made to him in this
behalf by the registered person or the chartered accountant or cost accountant or for any material
and sufficient reason, extend the said period by a further period of ninety days.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of
the registered person have been audited under any other provisions of this Act or any other law for
the time being in force.
(4) The registered person shall be given an opportunity of being heard in respect of any
material gathered on the basis of special audit under sub-section (1) which is proposed to be used
in any proceedings against him under this Act or the rules made thereunder.
(5) The expenses of the examination and audit of records under sub-section (1), including
the remuneration of such chartered accountant or cost accountant, shall be determined and paid by
the Commissioner and such determination shall be final.
(6) Where the special audit conducted under sub-section (1) results in detection of tax not
paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the
proper officer may initiate action under section 73 or section 74.
CHAPTER XIV
INSPECTION, SEARCH, SEIZURE AND ARREST
68[Sec.67. Power of inspection search and seizure.
(1) Where the proper officer, not below the rank of Joint Commissioner, has reasons to
believe that––
(a) a taxable person has suppressed any transaction relating to supply of goods or services
or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement
under this Act or has indulged in contravention of any of the provisions of this Act or the rules
made thereunder to evade tax under this Act; or
(b) any person engaged in the business of transporting goods or an owner or operator of a
warehouse or a godown or any other place is keeping goods which have escaped payment of tax
or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable
under this Act,
he may authorise in writing any other officer of central tax to inspect any places of business of the
taxable person or the persons engaged in the business of transporting goods or the owner or the
operator of warehouse or godown or any other place.
68.Sec.67 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
www.taxguru.in
(2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to
an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods
liable to confiscation or any documents or books or things, which in his opinion shall be useful for
or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing
any other officer of central tax to search and seize or may himself search and seize such goods,
documents or books or things:
Provided that where it is not practicable to seize any such goods, the proper officer, or
any officer authorised by him, may serve on the owner or the custodian of the goods an order
that he shall not remove, part with, or otherwise deal with the goods except with the previous
permission of such officer:
Provided further that the documents or books or things so seized shall be retained by such
officer only for so long as may be necessary for their examination and for any inquiry or
proceedings under this Act.
(3) The documents, books or things referred to in sub-section (2) or any other documents,
books or things produced by a taxable person or any other person, which have not been relied upon
for the issue of notice under this Act or the rules made thereunder, shall be returned to such person
within a period not exceeding thirty days of the issue of the said notice.
(4) The officer authorised under sub-section (2) shall have the power to seal or break open
the door of any premises or to break open any almirah, electronic devices, box, receptacle in which
any goods, accounts, registers or documents of the person are suspected to be concealed, where
access to such premises, almirah, electronic devices, box or receptacle is denied.
(5) The person from whose custody any documents are seized under sub-section (2) shall
be entitled to make copies thereof or take extracts there from in the presence of an authorised
officer at such place and time as such officer may indicate in this behalf except where making such
copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the
investigation.
(6) The goods so seized under sub-section (2) shall be released, on a provisional basis,
upon execution of a bond and furnishing of a security, in such manner and of such quantum,
respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable,
as the case may be.
(7) Where any goods are seized under sub-section (2) and no notice in respect thereof is
given within six months of the seizure of the goods, the goods shall be returned to the person from
whose possession they were seized:
Provided that the period of six months may, on sufficient cause being shown, be extended
by the proper officer for a further period not exceeding six months.
www.taxguru.in
(8) The Government may, having regard to the perishable or hazardous nature of any
goods, depreciation in the value of the goods with the passage of time, constraints of storage space
for the goods or any other relevant considerations, by notification, specify the goods or class of
goods which shall, as soon as may be after its seizure under sub-section (2), be disposed of by the
proper officer in such manner as may be prescribed.
(9) Where any goods, being goods specified under sub-section (8), have been seized by a
proper officer, or any officer authorised by him under sub-section (2), he shall prepare an inventory
of such goods in such manner as may be prescribed.
(10) The provisions of the Code of Criminal Procedure, 1973(2 of 1974), relating to search
and seizure, shall, so far as may be, apply to search and seizure under this section subject to the
modification that sub-section (5) of section 165 of the said Code shall have effect as if for theword
“Magistrate”, wherever it occurs, the word “Commissioner” were substituted.
(11) Where the proper officer has reasons to believe that any person has evaded or is
attempting to evade the payment of any tax, he may, for reasons to be recorded in writing, seize
the accounts, registers or documents of such person produced before him and shall grant a receipt
for the same, and shall retain the same for so long as may be necessary in connection with any
proceedings under this Act or the rules made thereunder for prosecution.
(12) The Commissioner or an officer authorised by him may cause purchase of any goods
or services or both by any person authorised by him from the business premises of any taxable
person, to check the issue of tax invoices or bills of supply by such taxable person, and on return
of goods so purchased by such officer, such taxable person or any person in charge of the business
premises shall refund the amount so paid towards the goods after cancelling any tax invoice or bill
of supply issued earlier.
69[Sec.68. Inspection of goods in movement.
(1) The Government may require the person in charge of a conveyance carrying any
consignment of goods of value exceeding such amount as may be specified to carry with him such
documents and such devices as may be prescribed.
69.Sec.68 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The details of documents required to be carried under sub-section (1) shall be validated
in such manner as may be prescribed.
(3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer
at any place, he may require the person in charge of the said conveyance to produce the documents
prescribed under the said sub-section and devices for verification, and the said person shall be
liable to produce the documents and devices and also allow the inspection of goods.
www.taxguru.in
70[Sec.69. Power to arrest.
(1) Where the Commissioner has reasons to believe that a person has committed any
offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section
132 which is punishable under clause (i) or (ii) of sub-section (1), or sub-section (2) of the said
section, he may, by order, authorise any officer of central tax to arrest such person.
70.Sec.69 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Where a person is arrested under sub-section (1) for an offence specified under sub-
section(5) of section 132, the officer authorised to arrest the person shall inform such person of
the grounds of arrest and produce him before a Magistrate within twenty-four hours.
(3) Subject to the provisions of the Code of Criminal Procedure, 1973(2 of 1974),––
(a) where a person is arrested under sub-section (1) for any offence specified under sub-
section (4) of section 132, he shall be admitted to bail or in default of bail, forwarded to the custody
of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner or the
Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise,
have the same powers and be subject to the same provisions as an officer-in-charge of a police
station.
71[Sec.70. Power to summon persons to give evidence and produce documents.
(1) The proper officer under this Act shall have power to summon any person whose
attendance he considers necessary either to give evidence or to produce a document or any other
thing in any inquiry in the same manner, as provided in the case of a civil court under the provisions
of the Code of Civil Procedure, 1908 (5 of 1908).
71.Sec.70 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Every such inquiry referred to in sub-section (1) shall be deemed to be a “judicial
proceedings” within the meaning of section 193 and section 228 of the Indian Penal Code(45 of
1860). 72[Sec.71. Access to business premises.
(1) Any officer under this Act, authorised by the proper officer not below the rank of Joint
Commissioner, shall have access to any place of business of a registered person to inspect books
of account, documents, computers, computer programs, computer software whether installed in a
computer or otherwise and such other things as he may require and which may be available at such
place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be
necessary to safeguard the interest of revenue.
72.Sec.71 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Every person in charge of place referred to in sub-section (1) shall, on demand, make
available to the officer authorised under sub-section (1) or the audit party deputed by the proper
officer or a cost accountant or chartered accountant nominated under section 66—
www.taxguru.in
(i) such records as prepared or maintained by the registered person and declared to
the proper officer in such manner as may be prescribed;
(ii) trial balance or its equivalent;
(iii) statements of annual financial accounts, duly audited, wherever required;
(iv) cost audit report, if any, under section 148 of the Companies Act, 2013 (18 of
2013) ;
(v) the income-tax audit report, if any, under section 44AB of the Income-taxAct,
1961 (43 of 1961) ; and
(vi) any other relevant record,
for the scrutiny by the officer or audit party or the chartered accountant or cost accountant within
a period not exceeding fifteen working days from the day when such demand is made,or such
further period as may be allowed by the said officer or the audit party or the chartered accountant
or cost accountant.
73[Sec.72.Officers to assist proper officers.
(1) All officers of Police, Railways, Customs, and those officers engaged in the collection
of land revenue, including village officers, officers of State tax and officers of Union territory tax
shall assist the proper officers in the implementation of this Act.
(2) The Government may, by notification, empower and require any other class of officers
to assist the proper officers in the implementation of this Act when called upon to do so by the
Commissioner. 73.Sec.72 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
CHAPTER XV
DEMANDS AND RECOVERY
74[Sec.73. Determination of tax not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement
or suppression of facts. (1) Where it appears to the proper officer that any tax has not been paid
or shortpaid or erroneously refunded, or where input tax credit has been wrongly availed or utilized
for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to
evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or
which has been so short paid or to whom the refund has erroneously been made, or who has
wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not
pay the amount specified in the notice along with interest payable thereon under section 50 and a
penalty leviable under the provisions of this Act or the rules made thereunder.
www.taxguru.in
74.Sec.73 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The proper officer shall issue the notice under sub-section (1) at least three months prior
to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer
may serve a statement, containing the details of tax not paid or short paid or erroneously refunded
or input tax credit wrongly availed or utilised for such periods other than those covered under sub-
section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on such person
under sub-section (1), subject to the condition that the grounds relied upon for such tax periods
other than those covered under sub-section (1) are the same as are mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under sub-section (1) or,
as the case may be, the statement under sub-section (3), pay the amount of tax along with interest
payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as
ascertained by the proper officer and inform the proper officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice under sub-
section (1) or, as the case may be, the statement under sub-section (3), in respect of the tax so paid
or any penalty payable under the provisions of this Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under sub-section (5)
falls short of the amount actually payable, he shall proceed to issue the notice as provided for in
sub-section (1) in respect of such amount which falls short of the amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the
said tax along with interest payable under section 50 within thirty days of issue of show cause
notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed
to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by person
chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent.
of tax or ten thousand rupees, whichever is higher, due from such person and issue an order.
(10) The proper officer shall issue the order under sub-section (9) within three years from
the due date for furnishing of annual return for the financial year to which the tax not paid or short
paid or input tax credit wrongly availed or utilised relates to or within three years from the date of
erroneous refund.
(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty
under sub-section (9) shall be payable where any amount of self-assessed tax or any amount
collected as tax has not been paid within a period of thirty days from the due date of payment of
such tax.
www.taxguru.in
75[Sec.74. Determinationof tax not paid or short paid or erroneously refunded or input tax credit
wrongly availed or utilised by reason of fraud or anywillful-misstatement or suppression of facts.
(1) Where it appears to the proper officer that any tax has not been paid or short paid or
erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of
fraud, or any willful -misstatement or suppression of facts to evade tax, he shall serve notice on
the person chargeable with tax which has not been so paid or which has been so short paid or to
whom the refund has erroneously been made, or who has wrongly availed or utilised input tax
credit, requiring him to show cause as to why he should not pay the amount specified in the notice
along with interest payable thereon under section 50 and a penalty equivalent to the tax specified
in the notice.
75.Sec.74 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The proper officer shall issue the notice under sub-section (1) at least six months prior
to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer
may serve a statement, containing the details of tax not paid or short paid or erroneously refunded
or input tax credit wrongly availed or utilised for such periods other than those covered under sub-
section (1), on the person chargeable with tax.
(4) The service of statement under sub-section (3) shall be deemed to be service of notice
under sub-section (1) of section 73, subject to the condition that the grounds relied upon in the said
statement, except the ground of fraud, or any wilful-misstatement or suppression of facts to evade
tax, for periods other than those covered under sub-section (1) are the same as are mentioned in
the earlier notice.
(5) The person chargeable with tax may, before service of notice under sub-section (1), pay
the amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen
per cent. of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by
the proper officer and inform the proper officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice under sub-
section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or
the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under sub-section (5)
falls short of the amount actually payable, he shall proceed to issue the notice as provided for in
sub-section (1) in respect of such amount which falls short of the amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) pays the said tax along
with interest payable under section 50 and a penalty equivalent to twenty-five per cent. of such tax
within thirty days of issue of the notice, all proceedings in respect of the said notice shall be
deemed to be concluded.
www.taxguru.in
(9) The proper officer shall, after considering the representation, if any, made by the person
chargeable with tax, determine the amount of tax, interest and penalty due from such person and
issue an order.
(10) The proper officer shall issue the order under sub-section (9) within a period of five
years from the due date for furnishing of annual return for the financial year to which the tax not
paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from
the date of erroneous refund.
(11) Where any person served with an order issued under sub-section (9) pays the tax along
with interest payable thereon under section 50 and a penalty equivalent to fifty per cent. of such
tax within thirty days of communication of the order, all proceedings in respect of the said notice
shall be deemed to be concluded.
Explanation 1.—For the purposes of section 73 and this section, —
(i) the expression “all proceedings in respect of the said notice” shall not include
proceedings under section 132;
(ii) where the notice under the same proceedings is issued to the main person liable
to pay tax and some other persons, and such proceedings against the main person have been
concluded under section 73 or section 74, the proceedings against all the persons liable to
pay penalty under sections 122,125, 129 and 130 are deemed to be concluded.
Explanation 2.––For the purposes of this Act, the expression “suppression”shall mean non-
declaration of facts or information which a taxable person is required to declare in the return,
statement, report or any other document furnished under this Actor the rules made thereunder, or
failure to furnish any information on being asked for,in writing, by the proper officer.
76[Sec.75. General provisions relating to determination of tax.
(1) Where the service of notice or issuance of order is stayed by an order of a court or
Appellate Tribunal, the period of such stay shall be excluded in computing the period specified in
sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74, as the case may
be.
76.Sec.75 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Where any Appellate Authority or Appellate Tribunal or court concludes that the notice
issued under sub-section (1) of section 74 is not sustainable for the reason that the charges of fraud
or any wilful-misstatement or suppression of facts to evade tax has not been established against
the person to whom the notice was issued, the proper officer shall determine the tax payable by
such person, deeming as if the notice were issued under sub-section (1) of section 73.
(3) Where any order is required to be issued in pursuance of the direction of the Appellate
Authority or Appellate Tribunal or a court, such order shall be issued within two years from the
date of communication of the said direction.
www.taxguru.in
(4) An opportunity of hearing shall be granted where a request is received in writing from
the person chargeable with tax or penalty, or where any adverse decision is contemplated against
such person.
(5) The proper officer shall, if sufficient cause is shown by the person chargeable with tax,
grant time to the said person and adjourn the hearing for reasons to be recorded in writing:
Provided that no such adjournment shall be granted for more than three times to a person
during the proceedings.
(6) The proper officer, in his order, shall set out the relevant facts and the basis of his
decision.
(7) The amount of tax, interest and penalty demanded in the order shall not be in excess of
the amount specified in the notice and no demand shall be confirmed on the grounds other than
the grounds specified in the notice.
(8) Where the Appellate Authority or Appellate Tribunal or court modifies the amount of
tax determined by the proper officer, the amount of interest and penalty shall stand modified
accordingly, taking into account the amount of tax so modified.
(9) The interest on the tax short paid or not paid shall be payable whether or not specified
in the order determining the tax liability.
(10) The adjudication proceedings shall be deemed to be concluded, if the order is not
issued within three years as provided for in sub-section (10) of section 73 or within five years as
provided for in sub-section (10) of section 74.
(11) An issue on which the Appellate Authority or the Appellate Tribunal or the High Court
has given its decision which is prejudicial to the interest of revenue in some other proceedings and
an appeal to the Appellate Tribunal or the High Court or the Supreme Court against such decision
of the Appellate Authority or the Appellate Tribunal or the High Court is pending, the period spent
between the date of the decision of the AppellateAuthority and that of the Appellate Tribunal or
the date of decision of the Appellate Tribunal and that of the High Court or the date of the decision
of the High Court and that of the Supreme Court shall be excluded in computing the period referred
to in sub-section (10) ofsection 73 or sub-section (10) of section 74 where proceedings are initiated
by way of issue of a show cause notice under the said sections.
(12) Notwithstanding anything contained in section 73 or section 74, where any amount of
self-assessed tax in accordance with a return furnished under section 39 remains unpaid, either
wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be
recovered under the provisions of section 79.
(13) Where any penalty is imposed under section 73 or section 74, no penalty for the same
act or omission shall be imposed on the same person under any other provision of this Act.
www.taxguru.in
77[Sec.76. Tax collected but not paid to Government.
(1) Notwithstanding anything to the contrary contained in any order or direction of any
Appellate Authority or Appellate Tribunal or court or in any other provisions of this Act or the
rules made thereunder or any other law for the time being in force, every person who has collected
from any other person any amount as representing the tax under this Act, and has not paid the said
amount to the Government, shall forthwith pay the said amount tothe Government, irrespective of
whether the supplies in respect of which such amount was collected are taxable or not.
77.Sec.76 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Where any amount is required to be paid to the Government under sub-section (1), and
which has not been so paid, the proper officer may serve on the personliable to pay such amount a
notice requiring him to show cause as to why the said amount as specified in the notice, should not
be paid by him to the Government and why a penalty equivalent to the amount specified in the
notice should not be imposed on him under the provisions of this Act.
(3) The proper officer shall, after considering the representation, if any, made by the person
on whom the notice is served under sub-section (2), determine the amount due from such person
and thereupon such person shall pay the amount so determined.
(4) The person referred to in sub-section (1) shall in addition to paying the amount referred
to in sub-section (1) or sub-section (3) also be liable to pay interest thereon at the rate specified
under section 50 from the date such amount was collected by him to the date such amount is paid
by him to the Government.
(5) An opportunity of hearing shall be granted where a request is received in writing from
the person to whom the notice was issued to show cause.
(6) The proper officer shall issue an order within one year from the date of issue of the
notice.
(7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal,
the period of such stay shall be excluded in computing the period of one year.
(8) The proper officer, in his order, shall set out the relevant facts and the basis of his
decision.
(9) The amount paid to the Government under sub-section (1) or sub-section (3) shall be
adjusted against the tax payable, if any, by the person in relation to the supplies referred to in sub-
section (1).
(10) Where any surplus is left after the adjustment under sub-section (9), the amount of
such surplus shall either be credited to the Fund or refunded to the person who has borne the
incidence of such amount.
(11) The person who has borne the incidence of the amount may apply for the refund of
the same in accordance with the provisions of section 54.
www.taxguru.in
78[Sec.77. Tax wrongfully collected and paid to Central Government or State Government. (1) A registered person who has paid the Central tax and State tax or, as the case may be, the
Central tax and the Union territory tax on a transaction considered by him to be an intra-State
supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount
of taxes so paid in such manner and subject to such conditions as may be prescribed.
78.Sec.77 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) A registered person who has paid integrated tax on a transaction considered by him to
be an inter-State supply, but which is subsequently held to be an intra-State supply, shall not be
required to pay any interest on the amount of central tax and State tax or, as the case may be, the
Central tax and the Union territory tax payable.
79[Sec.78. Initiation of recovery proceedings.
Any amount payable by a taxable person in pursuance of an order passed under this Act
shall be paid by such person within a period of three months from the date of service of such order
failing which recovery proceedings shall be initiated:
79.Sec.78 came into force on 01-04-2017, Noti. No.9/2017-CT, dt.28-06-2017.
Provided that where the proper officer considers it expedient in the interest of revenue, he
may, for reasons to be recorded in writing, require the said taxable person to make such payment
within such period less than a period of three months as may be specified by him.
80[Sec.79. Recovery of tax.
(1) Where any amount payable by a person to the Government under any of the provisions
of this Act or the rules made thereunder is not paid, the proper officer shall proceed to recover the
amount by one or more of the following modes, namely: –
80.Sec.79 came into force on 01-07-2017, vide Noto. No.9/2017-CT, dt.28-06-2017.
(a) the proper officer may deduct or may require any other specified officer to deduct the
amount so payable from any money owing to such person which may be under the control of the
proper officer or such other specified officer;
(b) the proper officer may recover or may require any other specified officer to recover the
amount so payable by detaining and selling any goods belonging to such person which are under
the control of the proper officer or such other specified officer;
(c) (i) the proper officer may, by a notice in writing, require any other person from whom
money is due or may become due to such person or who holds or may subsequently hold money
for or on account of such person, to pay to the Government either forthwith upon the money
becoming due or being held, or within the time specified in the notice not being before the money
becomes due or is held, so much of the moneyas is sufficient to pay the amount due from such
person or the whole of the money when it is equal to or less than that amount;
www.taxguru.in
(ii) every person to whom the notice is issued under sub-clause (i) shall be bound
to comply with such notice, and in particular, where any such notice is issued to a post
office, banking company or an insurer, it shall not be necessary to produce any pass book,
deposit receipt, policy or any other document for the purpose of any entry, endorsement or
the like being made before payment is made, notwithstanding any rule, practice or
requirement to the contrary;
(iii) in case the person to whom a notice under sub-clause (i) has been issued, fails
to make the payment in pursuance thereof to the Government, he shall be deemed to be a
defaulter in respect of the amount specified in the notice and all the consequences of this
Act or the rules made thereunder shall follow;
(iv) the officer issuing a notice under sub-clause (i) may, at any time, amend or
revoke such notice or extend the time for making any payment in pursuance of the notice;
(v) any person making any payment in compliance with a notice issued under sub-
clause (i) shall be deemed to have made the payment under the authority of the person in
default and such payment being credited to the Government shall be deemed to constitute
a good and sufficient discharge of the liability of such person to the person in default to the
extent of the amount specified in the receipt;
(vi) any person discharging any liability to the person in default after service on
him of the notice issued under sub-clause (i) shall be personally liable to the Government
to the extent of the liability discharged or to the extent of the liability of the person indefault
for tax, interest and penalty, whichever is less;
(vii) where a person on whom a notice is served under sub-clause (i) proves to the
satisfaction of the officer issuing the notice that the money demanded or any part thereof
was not due to the person in default or that he did not hold any money for or on account of
the person in default, at the time the notice was served on him, nor is the money demanded
or any part thereof, likely to become due to the said person or beheld for or on account of
such person, nothing contained in this section shall bedeemed to require the person on
whom the notice has been served to pay to the Government any such money or part thereof;
(d) the proper officer may, in accordance with the rules to be made in this behalf, distrain
any movable or immovable property belonging to or under the control of such person, and detain
the same until the amount payable is paid; and in case, any part of the said amount payable or of
the cost of the distress or keeping of the property, remains unpaid for a period of thirty days next
after any such distress, may cause the said property to be sold and with the proceeds of such sale,
may satisfy the amount payable and the costs including cost of sale remaining unpaid and shall
render the surplus amount, if any, to such person;
(e) the proper officer may prepare a certificate signed by him specifying the amount due
from such person and send it to the Collector of the district in which such person owns any property
or resides or carries on his business or to any officer authorised by the Government and the said
www.taxguru.in
Collector or the said officer, on receipt of such certificate, shall proceed to recover from such
person the amount specified thereunder as if it were an arrear of land revenue;
(f) Notwithstanding anything contained in the Code of Criminal Procedure,1973, the proper
officer may file an application to the appropriate Magistrate and such Magistrate shall proceed to
recover from such person the amount specified thereunder as if it were a fine imposed by him.
(2) Where the terms of any bond or other instrument executed under this Act or any
rules or regulations made thereunder provide that any amount due under such instrument
may be recovered in the manner laid down in sub-section (1), the amount may, without
prejudice to any other mode of recovery, be recovered in accordance with the provisions
of that sub-section.
(3) Where any amount of tax, interest or penalty is payable by a person to the
Government under any of the provisions of this Act or the rules made thereunder and which
remains unpaid, the proper officer of State tax or Union territory tax, during the course of
recovery of said tax arrears, may recover the amount from the said person as if it were
anarrear of State tax or Union territory tax and credit the amount so recovered to the
account of the Government.
(4) Where the amount recovered under sub-section (3) is less than the amount due
to the Central Government and State Government, the amount to be credited to the account
of the respective Governments shall be in proportion to the amount due to each such
Government.
80a [Explanation.- For the purposes of this section, the word person shall include “distinct
persons” as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25.]
80a. Inserted the Explanation by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
81[Sec.80. Payment of tax and other amount in instalments.
On an application filed by a taxable person, the Commissioner may, for reasons to be
recorded in writing, extend the time for payment or allow payment of any amount due under this
Act, other than the amount due as per the liability self-assessed in any return, by such person in
monthly instalments not exceeding twenty four, subject to payment of interest under section 50
and subject to such conditions and limitations as may be prescribed:
81.Sec.80 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
Provided that where there is default in payment of any one instalment on its due date, the
whole outstanding balance payable on such date shall become due and payable forthwith and shall,
without any further notice being served on the person, be liable for recovery.
82[Sec.81.Transfer of property to be void in certain cases.
www.taxguru.in
Where a person, after any amount has become due from him, creates a charge on or parts
with the property belonging to him or in his possession by way of sale, mortgage, exchange, or
any other mode of transfer whatsoever of any of his properties in favour of any other person with
the intention of defrauding the Government revenue, such charge or transfer shall be void as
against any claim in respect of any tax or any other sum payable by the said person:
82.Sec.81 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
Provided that, such charge or transfer shall not be void if it is made for adequate
consideration, in good faith and without notice of the pendency of such proceedings under this Act
or without notice of such tax or other sum payable by the said person, or with the previous
permission of the proper officer.
83[Sec.82. Tax to be first charge on property.
Notwithstanding anything to the contrary contained in any law for the time being in force,
save as otherwise provided in the Insolvency and Bankruptcy Code, 2016(31 of 2016), any amount
payable by a taxable person or any other person on account of tax, interest or penalty which he is
liable to pay to the Government shall be a first charge on the property of such taxable person or
such person.
83.Sec.82 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017. 84[Sec.83. Provisional attachment to protect revenue in certain cases.
(1) Where during the pendency of any proceedings under section 62 or section 63 or section
64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose
of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in
writing attach provisionally any property, including bank account, belonging to the taxable person
in such manner as may be prescribed.
84.Sec.83 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Every such provisional attachment shall cease to have effect after the expiry of a period
of one year from the date of the order made under sub-section (1).
85[Sec.84. Continuation and validation of certain recovery proceedings.
Where any notice of demand in respect of any tax, penalty, interest or any other amount
payable under this Act, (hereafter in this section referred to as “Government dues”), is served upon
any taxable person or any other person and any appeal or revision applicationis filed or any other
proceedings is initiated in respect of such Government dues, then––
85.Sec.84 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
www.taxguru.in
(a) where such Government dues are enhanced in such appeal, revision or other
proceedings, the Commissioner shall serve upon the taxable person or any other person another
notice of demand in respect of the amount by which such Government dues are enhanced and any
recovery proceedings in relation to such Government dues as are covered by the notice of demand
served upon him before the disposal of such appeal, revision or other proceedings may, without
the service of any fresh notice of demand, be continued from the stage at which such proceedings
stood immediately before such disposal;
(b) where such Government dues are reduced in such appeal, revision or in other
proceedings––
(i) it shall not be necessary for the Commissioner to serve upon the taxable person
a fresh notice of demand;
(ii) the Commissioner shall give intimation of such reduction to him and to the
appropriate authority with whom recovery proceedings is pending;
(iii) any recovery proceedings initiated on the basis of the demand served upon him
prior to the disposal of such appeal, revision or other proceedings may be continued in
relation to the amount so reduced from the stage at which such proceedings stood
immediately before such disposal.
CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
86[Sec.85. Liability in case of transfer of business.
(1) Where a taxable person, liable to pay tax under this Act, transfers his business in whole
or in part, by sale, gift, lease, leave and license, hire or in any other manner whatsoever, the taxable
person and the person to whom the business is so transferred shall, jointly and severally, be liable
wholly or to the extent of such transfer, to pay the tax, interest or any penalty due from the taxable
person upto the time of such transfer, whether such tax, interest or penalty has been determined
before such transfer, but has remained unpaid or is determined thereafter.
86.Sec.85 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Where the transferee of a business referred to in sub-section (1) carries on such business
either in his own name or in some other name, he shall be liable to pay tax on the supply of goods
or services or both effected by him with effect from the date of such transfer and shall, if he is a
registered person under this Act, apply within the prescribed time for amendment of his certificate
of registration.
87[Sec.86. Liability of agent and principal.
Where an agent supplies or receives any taxable goods on behalf of his principal, such agent
and his principal shall, jointly and severally, be liable to pay the tax payable on such goods under
this Act.
www.taxguru.in
87.Sec.86 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
88[Sec.87. Liability in case of amalgamation or merger of companies.
(1) When two or more companies are amalgamated or merged in pursuance of an order of
court or of Tribunal or otherwise and the order is to take effect from a date earlier to the date of
the order and any two or more of such companies have supplied or received any goods or services
or both to or from each other during the period commencing on the date from which the order takes
effect till the date of the order, then such transactions of supply and receipt shall be included in the
turnover of supply or receipt of the respective companies and they shall be liable to pay tax
accordingly.
88.Sec.87 came into force on 01-07-2017, vide Noti. No. 9/2017-CT, dt.28-06-2017.
(2) Notwithstanding anything contained in the said order, for the purposes of this Act, the
said two or more companies shall be treated as distinct companies for the period up to the date of
the said order and the registration certificates of the said companies shall be cancelled with effect
from the date of the said order.
89[Sec.88. Liability in case of company in liquidation.
(1) When any company is being wound up whether under the orders of a court or Tribunal
or otherwise, every person appointed as receiver of any assets of a company (hereafter in this
section referred to as the “liquidator”), shall, within thirty days after his appointment, give
intimation of his appointment to the Commissioner.
89.Sec.88 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The Commissioner shall, after making such inquiry or calling for such information as
he may deem fit, notify the liquidator within three months from the date on which he receives
intimation of the appointment of the liquidator, the amount which in the opinion ofthe
Commissioner would be sufficient to provide for any tax, interest or penalty which is then, or is
likely thereafter to become, payable by the company.
(3) When any private company is wound up and any tax, interest or penalty determined
under this Act on the company for any period, whether before or in the course of or after its
liquidation, cannot be recovered, then every person who was a director of such company at any
time during the period for which the tax was due shall, jointly and severally, be liable for the
payment of such tax, interest or penalty, unless he proves to the satisfaction of the Commissioner
that such non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on
his part in relation to the affairs of the company. 90[Sec.89. Liability of directors of private company.
(1) Notwithstanding anything contained in the Companies Act, 2013( 18 of 2013), where any
tax, interest or penalty due from a private company in respect of any supply of goods or services
or both for any period cannot be recovered, then, every person who was a director of the private
company during such period shall, jointly and severally, be liable for the payment of such tax,
interest or penalty unless he proves that the non-recovery cannot be attributed to any gross neglect,
misfeasance or breach of duty on his part in relation to the affairs of the company.
www.taxguru.in
90.Sec.89 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Where a private company is converted into a public company and the tax, interest or
penalty in respect of any supply of goods or services or both for any period during which such
company was a private company cannot be recovered before such conversion, then, nothing
contained in sub-section (1) shall apply to any person who was a director of such private company
in relation to any tax, interest or penalty in respect of such supply of goods or services or both of
such private company:
Provided that nothing contained in this sub-section shall apply to any personal penalty
imposed on such director.
91[Sec.90. Liability of partners of firm to pay tax.
Notwithstanding any contract to the contrary and any other law for the time being in force,
where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the
partners of the firm shall, jointly and severally, be liable for such payment:
91.Sec.90 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017
Provided that where any partner retires from the firm, he or the firm, shall intimate the date
of retirement of the said partner to the Commissioner by a notice in that behalf in writing and such
partner shall be liable to pay tax, interest or penalty due up to the date of his retirement whether
determined or not, on that date:
Provided further that if no such intimation is given within one month from the date of
retirement, the liability of such partner under the first proviso shall continue until the date on which
such intimation is received by the Commissioner.
92[Sec.91. Liability of guardians, trustees, etc.
Where the business in respect of which any tax, interest or penalty is payable under this Act
is carried on by any guardian, trustee or agent of a minor or other incapacitated person on behalf
of and for the benefit of such minor or other incapacitated person, the tax, interest or penalty shall
be levied upon and recoverable from such guardian, trustee or agent in like manner and to the same
extent as it would be determined and recoverable from any such minor or other incapacitated
person, as if he were a major or capacitated person and as if he were conducting the business
himself, and all the provisions of this Act or the rules made thereunder shall apply accordingly.
92.Sec.91 came into force on 01-07-2017, vide Noti. No. 9/2017-CT, dt.28-06-2017.
93[Sec.92. Liability of Court of Wards, etc.
Where the estate or any portion of the estate of a taxable person owning a business in
respect of which any tax, interest or penalty is payable under this Act is under the control of the
Court of Wards, the Administrator General, the Official Trustee or any receiver or manager
(including any person, whatever be his designation, who in fact manages the business) appointed
by or under any order of a court, the tax, interest or penalty shall belevied upon and be recoverable
from such Court of Wards, Administrator General, Official Trustee, receiver or manager in like
manner and to the same extent as it would be determined and be recoverable from the taxable
person as if he were conducting the business himself, and all the provisions of this Act or the rules
made thereunder shall apply accordingly.
www.taxguru.in
93. Sec.92 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017
94[Sec.93. Special provisions regarding liability to pay tax, interest or penalty in certain cases.
(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016(31of 2016),
where a person, liable to pay tax, interest or penalty under this Act, dies, then––
94.Sec.93 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(a) if a business carried on by the person is continued after his death by his legal
representative or any other person, such legal representative or other person, shall be liable
to pay tax, interest or penalty due from such person under this Act; and
(b) if the business carried on by the person is discontinued, whether before or after
his death, his legal representative shall be liable to pay, out of the estate of the deceased,
to the extent to which the estate is capable of meeting the charge, the tax, interest or penalty
due from such person under this Act, whether such tax, interest or penalty has been
determined before his death but has remained unpaid or is determined after his death.
(2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31of 2016),
where a taxable person, liable to pay tax, interest or penalty under this Act, is a Hindu Undivided
Family or an association of persons and the property of the Hindu Undivided Family or the
association of persons is partitioned amongst the various members or groups of members, then,
each member or group of members shall, jointly and severally, be liable to pay the tax, interest or
penalty due from the taxable person under this Act up to the time of the partition whether such tax,
penalty or interest has been determined before partition but has remained unpaid or is determined
after the partition.
(3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31of 2016),
where a taxable person, liable to pay tax, interest or penalty under this Act, is a firm, and the firm
is dissolved, then, every person who was a partner shall, jointly and severally, be liable to pay the
tax, interest or penalty due from the firm under this Act up to the time of dissolution whether such
tax, interest or penalty has been determined before the dissolution, but has remained unpaid or is
determined after dissolution.
(4) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31of 2016),
where a taxable person liable to pay tax, interest or penalty under this Act, ––
(a) is the guardian of a ward on whose behalf the business is carried on by the
guardian; or
(b) is a trustee who carries on the business under a trust for a beneficiary, then, if
the guardianship or trust is terminated, the ward or the beneficiary shall be liable to pay the
tax, interest or penalty due from the taxable person upto the time of the termination of the
guardianship or trust, whether such tax, interest or penalty has been determined before the
termination of guardianship or trust but has remained unpaid or is determined thereafter.
www.taxguru.in
95[Sec.94. Liability in other cases.
(1) Where a taxable person is a firm or an association of persons or a Hindu Undivided
Family and such firm, association or family has discontinued business––
95.Sec.94 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(a) the tax, interest or penalty payable under this Act by such firm, association or
family up to the date of such discontinuance may be determined as if no such
discontinuance had taken place; and
(b) every person who, at the time of such discontinuance, was a partner of such
firm, or a member of such association or family, shall, notwithstanding such
discontinuance, jointly and severally, be liable for the payment of tax and interest
determined and penalty imposed and payable by such firm, association or family, whether
such tax and interest has been determined or penalty imposed prior to or after such
discontinuance and subject as aforesaid, the provisions of this Act shall, so far as may be,
apply as if every such person or partner or member were himself a taxable person.
(2) Where a change has occurred in the constitution of a firm or an association of persons,
the partners of the firm or members of association, as it existed before and as it exists after the
reconstitution, shall, without prejudice to the provisions of section 90, jointly and severally, be
liable to pay tax, interest or penalty due from such firm or association for any period before its
reconstitution.
(3) The provisions of sub-section (1) shall, so far as may be, apply where the taxable
person, being a firm or association of persons is dissolved or where the taxable person, being a
Hindu Undivided Family, has effected partition with respect to the business carried on by it and
accordingly references in that sub-section to discontinuance shall be construed as reference to
dissolution or to partition.
Explanation. – For the purposes of this Chapter, –
(i) a “Limited Liability Partnership” formed and registered under the provisions of the
Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a firm;
(ii) “court” means the District Court, High Court or Supreme Court.
CHAPTER XVII
ADVANCE RULING
96[Sec.95. Definitions.
In this Chapter, unless the context otherwise requires, –
www.taxguru.in
(a) “advance ruling” means a decision provided by the Authority or the Appellate Authority
to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section
(1) of section 100, in relation to the supply of goods or services or both being undertaken or
proposed to be undertaken by the applicant;
(b) “Appellate Authority” means the Appellate Authority for Advance Ruling referred to
in section 99;
(c) “applicant” means any person registered or desirous of obtaining registration under this
Act;
(d) “application” means an application made to the Authority under sub-section (1) of
section 97;
(e) “Authority” means the Authority for Advance Ruling referred to in section 96. 96.Sec.95 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
97[Sec.96. Authority for advance ruling.
Subject to the provisions of this Chapter, for the purposes of this Act, the Authority for
advance ruling constituted under the provisions of a State Goods and Services Tax Act or Union
Territory Goods and Services Tax Act shall be deemed to be the Authority for advance ruling in
respect of that State or Union territory.
97.Sec.96 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
98[Sec.97. Application for advance ruling.
(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an
application in such form and manner and accompanied by such fee as may be prescribed, stating
the question on which the advance ruling is sought.
98.Sec.97 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The question on which the advance ruling is sought under this Act, shall be in respect
of, ––
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods
www.taxguru.in
or services or both amounts to or results in a supply of goods or services or both,
within the meaning of that term.
99[Sec.98. Procedure on receipt of application.
(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded
to the concerned officer and, if necessary, call upon him to furnish the relevant records:
99.Sec.98 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
Provided that where any records have been called for by the Authority in any case, such
records shall, as soon as possible, be returned to the said concerned officer.
(2) The Authority may, after examining the application and the records called for and after
hearing the applicant or his authorised representative and the concerned officer or his authorised
representative, by order, either admit or reject the application:
Provided that the Authority shall not admit the application where the question raised in the
application is already pending or decided in any proceedings in the case of an applicant under any
of the provisions of this Act:
Provided further that no application shall be rejected under this sub-section unless
anopportunity of hearing has been given to the applicant:
Provided also that where the application is rejected, the reasons for such rejection shall be
specified in the order.
(3) A copy of every order made under sub-section (2) shall be sent to the applicant and to
the concerned officer.
(4) Where an application is admitted under sub-section (2), the Authority shall, after
examining such further material as may be placed before it by the applicant or obtained by the
Authority and after providing an opportunity of being heard to the applicant or his authorized
representative as well as to the concerned officer or his authorised representative, pronounce its
advance ruling on the question specified in the application.
(5) Where the members of the Authority differ on any question on which the advance ruling
is sought, they shall state the point or points on which they differ and make a reference to the
Appellate Authority for hearing and decision on such question.
(6) The Authority shall pronounce its advance ruling in writing within ninety days from
the date of receipt of application.
(7) A copy of the advance ruling pronounced by the Authority duly signed by the members
and certified in such manner as may be prescribed shall be sent to the applicant, the concerned
officer and the jurisdictional officer after such pronouncement.
www.taxguru.in
100[Sec.99. Appellate Authority for Advance Ruling.
Subject to the provisions of this Chapter, for the purposes of this Act, the Appellate
Authority for Advance Ruling constituted under the provisions of a State Goods and Services Tax
Act or a Union Territory Goods and Services Tax Act shall be deemed to be the Appellate
Authority in respect of that State or Union territory.
100.Sec.99 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
101[Sec.100. Appeal to Appellate Authority.
(1) The concerned officer, the jurisdictional officer or an applicant aggrieved by any
advance ruling pronounced under sub-section (4) of section 98, may appeal to the Appellate
Authority.
101.Sec.100 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Every appeal under this section shall be filed within a period of thirty days from the
date on which the ruling sought to be appealed against is communicated to the concerned officer,
the jurisdictional officer and the applicant:
Provided that the Appellate Authority may, if it is satisfied that the appellant was prevented
by a sufficient cause from presenting the appeal within the said period of thirty days, allow it to be
presented within a further period not exceeding thirty days.
(3) Every appeal under this section shall be in such form, accompanied by such fee and
verified in such manner as may be prescribed.
102[Sec.101. Orders of Appellate Authority.
(1) The Appellate Authority may, after giving the parties to the appeal or reference an
opportunity of being heard, pass such order as it thinks fit, confirming or modifying the ruling
appealed against or referred to.
102.Sec.101 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt. 28-06-2017.
(2) The order referred to in sub-section (1) shall be passed within a period of ninety days
from the date of filing of the appeal under section 100 or a reference undersub-section (5) of section
98.
(3) Where the members of the Appellate Authority differ on any point or points referred to
in appeal or reference, it shall be deemed that no advance ruling can be issued in respect of the
question under the appeal or reference.
www.taxguru.in
(4) A copy of the advance ruling pronounced by the Appellate Authority duly signed by
the Members and certified in such manner as may be prescribed shall be sent to the applicant, the
concerned officer, the jurisdictional officer and to the Authority after such pronouncement.
103[Sec.102. Rectification of advance ruling.
The Authority or the Appellate Authority may amend any order passed by it under section
98 or section 101, so as to rectify any error apparent on the face of the record, if such error is
noticed by the Authority or the Appellate Authority on its own accord, or is brought to its notice
by the concerned officer, the jurisdictional officer, the applicant or the appellant within a period
of six months from the date of the order:
103.Sec.102 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
Provided that no rectification which has the effect of enhancing the tax liability or reducing
the amount of admissible input tax credit shall be made unless the applicant or the appellant has
been given an opportunity of being heard.
104[Sec.103. Applicability of advance ruling.
(1) The advance ruling pronounced by the Authority or the Appellate Authority under this
Chapter shall be binding only—
(a) on the applicant who had sought it in respect of any matter referred to in sub-
section (2) of section 97 for advance ruling;
(b) on the concerned officer or the jurisdictional officer in respect of the applicant. 104.Sec.103 came into on 01-07-2017, vide Noti.No9/2017-CT, dt.08-06-2017.
(2) The advance ruling referred to in sub-section (1) shall be binding unless the law, facts
or circumstances supporting the original advance ruling have changed.
105[Sec.104. Advance ruling to be void in certain circumstances.
(1) Where the Authority or the Appellate Authority finds that advance ruling pronounced
by it under sub-section (4) of section 98 or under sub-section (1) of section 101 has been obtained
by the applicant or the appellant by fraud or suppression of material facts or misrepresentation of
facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of
this Act or the rules made thereunder shall apply to the applicant or the appellant as if such advance
ruling had never been made:
105.Sec.104 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
Provided that no order shall be passed under this sub-section unless an opportunity of being
heard has been given to the applicant or the appellant.
www.taxguru.in
Explanation. – The period beginning with the date of such advance ruling and endingwith
the date of order under this sub-section shall be excluded while computing the period specified in
sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74.
(2) A copy of the order made under sub-section (1) shall be sent to the applicant, the
concerned officer and the jurisdictional officer.
106[Sec.105. Powers of Authority and Appellate Authority.
(1) The Authority or the Appellate Authority shall, for the purpose of exercising its powers
regarding—
(a) discovery and inspection;
(b) enforcing the attendance of any person and examining him on oath;
(c) issuing commissions and compelling production of books of account and other
records,
have all the powers of a civil court under the Code of Civil Procedure, 1908. ( 5 of 1908) 106.Sec.105 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The Authority or the Appellate Authority shall be deemed to be a civil court for the
purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal
Procedure, 1973(2 of 1974), and every proceeding before the Authority or the Appellate Authority
shall be deemed to be a judicial proceedings within the meaning of sections 193 and 228, and for
the purpose of section 196 of the Indian Penal Code (45 of 1860).
107[Sec.106. Procedure of Authority and Appellate Authority.
The Authority or the Appellate Authority shall, subject to the provisions of this Chapter,
have power to regulate its own procedure.
107. Sec.106 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
CHAPTER XVIII
APPEALS AND REVISION
108[Sec.107. Appeals to Appellate Authority.
(1) Any person aggrieved by any decision or order passed under this Act or the State Goods
and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating
authority may appeal to such Appellate Authority as may be prescribed within three months from
the date on which the said decision or order is communicated to such person.
See Rules-108 to 116
108.Sec.107 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
(2) The Commissioner may, on his own motion, or upon request from the Commissioner
of State tax or the Commissioner of Union territory tax, call for and examine the record of any
www.taxguru.in
proceedings in which an adjudicating authority has passed any decision or order under this Act or
the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the
purpose of satisfying himself as to the legality or propriety of the said decision or order and may,
by order, direct any officer subordinate to him to apply to the Appellate Authority within six
months from the date of communication of the said decision or order forthe determination of such
points arising out of the said decision or order as may be specified by the Commissioner in his
order.
(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an
application to the Appellate Authority, such application shall be dealt with by theAppellate
Authority as if it were an appeal made against the decision or order of the adjudicating authority
and such authorised officer were an appellant and the provisions ofthis Act relating to appeals shall
apply to such application.
(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by
sufficient cause from presenting the appeal within the aforesaid period of three months or
sixmonths, as the case may be, allow it to be presented within a further period of one month.
(5) Every appeal under this section shall be in such form and shall be verified in such
manner as may be prescribed.
(6) No appeal shall be filed under sub-section (1), unless the appellant has paid—
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from
the impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising
from the said order,108a [ subject to a maximum of twenty-five crore rupees] in relation to
which the appeal has been filed.
108a. Inserted the words by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(7) Where the appellant has paid the amount under sub-section (6), the recovery
proceedings for the balance amount shall be deemed to be stayed.
(8) The Appellate Authority shall give an opportunity to the appellant of being heard.
(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an
appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons
to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during
hearing of the appeal.
(10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add
any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of
that ground from the grounds of appeal was not wilful or unreasonable.
www.taxguru.in
(11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass
such order, as it thinks just and proper, confirming, modifying or annulling the decision or order
appealed against but shall not refer the case back to the adjudicating authority that passed the said
decision or order:
Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or
confiscating goods of greater value or reducing the amount of refund or input tax credit shall not
be passed unless the appellant has been given a reasonable opportunity of showing cause against
the proposed order:
Provided further that where the Appellate Authority is of the opinion that any tax has not
been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed
or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless
the appellant is given notice to show cause against the proposedorder and the order is passed within
the time limit specified under section 73 or section 74.
(12) The order of the Appellate Authority disposing of the appeal shall be in writing and
shall state the points for determination, the decision thereon and the reasons for such decision.
(13) The Appellate Authority shall, where it is possible to do so, hear and decide every
appeal within a period of one year from the date on which it is filed:
Provided that where the issuance of order is stayed by an order of a court or Tribunal, the
period of such stay shall be excluded in computing the period of one year.
(14) On disposal of the appeal, the Appellate Authority shall communicate the order passed
by it to the appellant, respondent and to the adjudicating authority.
(15) A copy of the order passed by the Appellate Authority shall also be sent to the
jurisdictional Commissioner or the authority designated by him in this behalf and the jurisdictional
Commissioner of State tax or Commissioner of Union Territory Tax or an authority designated by
him in this behalf.
(16) Every order passed under this section shall, subject to the provisions of section 108 or
section 113 or section 117 or section 118 be final and binding on the parties.
109[Sec.108. Powers of Revisional Authority.
(1) Subject to the provisions of section 121 and any rules made thereunder, the Revisional
Authority may, on his own motion, or upon information received by him or on request from the
Commissioner of State tax, or the Commissioner of Union territory tax, call for and examine the
record of any proceedings, and if he considers that any decision or order passed under this Act or
under the State Goods and Services Tax Act or the Union TerritoryGoods and Services Tax Act
by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of revenue
and is illegal or improper or has not taken into account certain material facts, whether available at
the time of issuance of the said order or not or in consequence of an observation by the Comptroller
and Auditor General of India, he may, ifnecessary, stay the operation of such decision or order for
www.taxguru.in
such period as he deems fit and after giving the person concerned an opportunity of being heard
and after making such further inquiry as may be necessary, pass such order, as he thinks just and
proper, including enhancing or modifying or annulling the said decision or order.
109.Sec.108 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The Revisional Authority shall not exercise any power under sub-section (1), if—
(a) the order has been subject to an appeal under section 107 or section 112 or
section 117 or section 118; or
(b) the period specified under sub-section (2) of section 107 has not yet expired or
more than three years have expired after the passing of the decision or order sought to be
revised; or
(c) the order has already been taken for revision under this section at an
earlierstage; or
(d) the order has been passed in exercise of the powers under sub-section (1):
Provided that the Revisional Authority may pass an order under sub-section (1) on any
point which has not been raised and decided in an appeal referred to in clause (a) of sub-section
(2), before the expiry of a period of one year from the date of the order in such appeal or before
the expiry of a period of three years referred to in clause (b) of that sub-section, whichever is later.
(3) Every order passed in revision under sub-section (1) shall, subject to the provisions of
section 113 or section 117 or section 118, be final and binding on the parties.
(4) If the said decision or order involves an issue on which the Appellate Tribunal or the
High Court has given its decision in some other proceedings and an appeal to the High Court or
the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending,
the period spent between the date of the decision of the Appellate Tribunal and the date of the
decision of the High Court or the date of the decision of the High Court and the date of the decision
of the Supreme Court shall be excluded in computing the period of limitation referred to in clause
(b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice
under this section.
(5) Where the issuance of an order under sub-section (1) is stayed by the order of a court
or Appellate Tribunal, the period of such stay shall be excluded in computing the period of
limitation referred to in clause (b) of sub-section (2).
(6) For the purposes of this section, the term, ––
(i) “record” shall include all records relating to any proceedings under this Act
available at the time of examination by the Revisional Authority;
(ii) “decision” shall include intimation given by any officer lower in rank than the
Revisional Authority.
www.taxguru.in
110[Sec.109. Constitution of Appellate Tribunal and Benches thereof.
(1) The Government shall, on the recommendations of the Council, by notification,
constitute with effect from such date as may be specified therein, an Appellate Tribunal known as
the Goods and Services Tax Appellate Tribunal for hearing appeals against the orders passed by
the Appellate Authority or the Revisional Authority.
110.Sec.109 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The powers of the Appellate Tribunal shall be exercisable by the National Bench and
Benches thereof (hereinafter in this Chapter referred to as “Regional Benches”), State Bench and
Benches thereof (hereafter in this Chapter referred to as “Area Benches”).
(3) The National Bench of the Appellate Tribunal shall be situated at New Delhi which
shall be presided over by the President and shall consist of one Technical Member (Centre) and
one Technical Member (State).
(4) The Government shall, on the recommendations of the Council, by notification,
constitute such number of Regional Benches as may be required and such Regional Benches shall
consist of a Judicial Member, one Technical Member (Centre) and one Technical Member(State).
(5) The National Bench or Regional Benches of the Appellate Tribunal shall have
jurisdiction to hear appeals against the orders passed by the Appellate Authority or the Revisional
Authority in the cases where one of the issues involved relates to the place ofsupply.
(6) The Government shall, by notification, specify for each State or Union territory, 111[except for the State of Jammu and Kashmir], a Bench of the Appellate Tribunal (hereafter in
this Chapter, referred to as “State Bench”) for exercising the powers of the Appellate Tribunal
within the concerned State or Union territory:
111.Inserted the words by the CGST ( Extension to J & K ) Act,2017 ( No.26 of 2017 ) Dt. 23-08-2017, w.e.f .08-07-2017.
112[Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and
Services Tax Appellate Tribunal constituted under this Act shall be the State Appellate Tribunal
constituted under the Jammu and Kashmir Goods and Services Tax Act, 2017:
Provided further that] the Government shall, on receipt of a request from any State
Government, constitute such number of Area Benches in that State, as may be recommended by
the Council:
112. Subs. For the words “Provided that” by the CGST ( Extension to J & K ) Act,2017 ( No.26 of 2017 ) Dt. 23-08-2017, w.e.f.08-07-2017. 113[Provided also that] the Government may, on receipt of a request from any State, or on
its own motion for a Union territory, notify the Appellate Tribunal in a State to act as the Appellate
Tribunal for any other State or Union territory, as may be recommended by the Council, subject
to such terms and conditions as may be prescribed.
113.Subs. for the word “Provided further that” by the CGST ( Extension to J & K ) Act,2017 ( No.26 of 2017 )
www.taxguru.in
Dt. 23-08-2017, w.e.f.08-07-2017.
(7) The State Bench or Area Benches shall have jurisdiction to hear appeals against the
orders passed by the Appellate Authority or the Revisional Authority in the cases involving matters
other than those referred to in sub-section (5).
(8) The President and the State President shall, by general or special order, distribute the
business or transfer cases among Regional Benches or, as the case may be, Area Benches in a
State.
(9) Each State Bench and Area Benches of the Appellate Tribunal shall consist of a Judicial
Member, one Technical Member (Centre) and one Technical Member (State) and the State
Government may designate the senior most Judicial Member in a State as the State President.
(10) In the absence of a Member in any Bench due to vacancy or otherwise, any appeal
may, with the approval of the President or, as the case may be, the State President, be heard by a
Bench of two Members:
Provided that any appeal where the tax or input tax credit involved or the difference in tax
or input tax credit involved or the amount of fine, fee or penalty determined in any order appealed
against, does not exceed five lakh rupees and which does not involve any question of law may,
with the approval of the President and subject to such conditions as may be prescribed on the
recommendations of the Council, be heard by a bench consisting of a single member.
(11) If the Members of the National Bench, Regional Benches, State Bench or Area
Benches differ in opinion on any point or points, it shall be decided according to the opinion of
the majority, if there is a majority, but if the Members are equally divided, they shall state the point
or points on which they differ, and the case shall be referred by the President or as the case may
be, State President for hearing on such point or points to one or more of the other Members of the
National Bench, Regional Benches, State Bench or Area Benches and such point or points shall be
decided according to the opinion of the majority of Members who have heard the case, including
those who first heard it.
(12) The Government, in consultation with the President may, for the administrative
convenience, transfer -
(a) any Judicial Member or a Member Technical (State) from one Bench to another
Bench, whether National or Regional; or
(b) any Member Technical (Centre) from one Bench to another Bench, whether
National, Regional, State or Area.
(13) The State Government, in consultation with the State President may, for the
administrative convenience, transfer a Judicial Member or a Member Technical (State) from one
Bench to another Bench within the State.
www.taxguru.in
(14) No act or proceedings of the Appellate Tribunal shall be questioned or shall be invalid merely
on the ground of the existence of any vacancy or defect in the constitution of the Appellate
Tribunal.
114[Sec.110. President and Members of Appellate Tribunal, their qualification, appointment,
conditions of service, etc.
(1) A person shall not be qualified for appointment as—
(a) the President, unless he has been a Judge of the Supreme Court or is or has been
the Chief Justice of a High Court, or is or has been a Judge of a High Court for a period
not less than five years;
(b) a Judicial Member, unless he—
(i) has been a Judge of the High Court; or
(ii) is or has been a District Judge qualified to be appointed as a Judge of a
High Court; or
(iii) is or has been a Member of Indian Legal Service and has held a post
not less than Additional Secretary for three years;
(c) a Technical Member (Centre) unless he is or has been a member of Indian
Revenue (Customs and Central Excise) Service, Group A, and has completed at least
fifteen years of service in Group A;
(d) a Technical Member (State) unless he is or has been an officer of the State
Government not below the rank of Additional Commissioner of Value Added Tax or the
State goods and services tax or such rank as may be notified by the concerned State
Government on the recommendations of the Council with at least three years of experience
in the administration of an existing law or the State Goods and Services Tax Act or in the
field of finance and taxation. 114.Sec.110 came into force on 01-07-2017, vide Noti.No.9/2017-CT, dt.28-06-2017.
(2) The President and the Judicial Members of the National Bench and the Regional
Benches shall be appointed by the Government after consultation with the Chief Justice of India
or his nominee:
www.taxguru.in
Provided that in the event of the occurrence of any vacancy in the office of the President
by reason of his death, resignation or otherwise, the senior most Member of the National Bench
shall act as the President until the date on which a new President, appointed in accordance with
the provisions of this Act to fill such vacancy, enters upon his office:
Provided further that where the President is unable to discharge his functions owing to
absence, illness or any other cause, the senior most Member of the National Bench shall discharge
the functions of the President until the date on which the President resumes his duties.
(3) The Technical Member (Centre) and Technical Member (State) of the National Bench
and Regional Benches shall be appointed by the Government on the recommendations of a
Selection Committee consisting of such persons and in such manner as may be prescribed.
(4) The Judicial Member of the State Bench or Area Benches shall be appointed by the
State Government after consultation with the Chief Justice of the High Court of the State or his
nominee.
(5) The Technical Member (Centre) of the State Bench or Area Benches shall be appointed
by the Central Government and Technical Member (State) of the State Bench or Area Benches
shall be appointed by the State Government in such manner as may be prescribed.
(6) No appointment of the Members of the Appellate Tribunal shall be invalid merely by
the reason of any vacancy or defect in the constitution of the Selection Committee.
(7) Before appointing any person as the President or Members of the Appellate Tribunal,
the Central Government or, as the case may be, the State Government, shall satisfy itself that such
person does not have any financial or other interests which are likely to prejudicially affect his
functions as such President or Member.
(8) The salary, allowances and other terms and conditions of service of the President, State
President and the Members of the Appellate Tribunal shall be such as may be prescribed:
Provided that neither salary and allowances nor other terms and conditions of service of
the President, State President or Members of the Appellate Tribunal shall be varied to their
disadvantage after their appointment.
(9) The President of the Appellate Tribunal shall hold office for a term of three years from
the date on which he enters upon his office, or until he attains the age of seventy years, whichever
is earlier and shall be eligible for reappointment.
(10) The Judicial Member of the Appellate Tribunal and the State President shall hold
office for a term of three years from the date on which he enters upon his office, or until he attains
the age of sixty-five years, whichever is earlier and shall be eligible for reappointment.
(11) The Technical Member (Centre) or Technical Member (State) of the
AppellateTribunal shall hold office for a term of five years from the date on which he enters upon
www.taxguru.in
his office, or until he attains the age of sixty-five years, whichever is earlier and shall be eligible
for reappointment.
(12) The President, State President or any Member may, by notice in writing under his
hand addressed to the Central Government or, as the case may be, the State Government resign
from his office:
Provided that the President, State President or Member shall continue to hold office until
the expiry of three months from the date of receipt of such notice by the Central Government, or,
as the case may be, the State Government or until a person duly appointed as his successor enters
upon his office or until the expiry of his term of office, whichever is the earliest.
(13) The Central Government may, after consultation with the Chief Justice of India, in
case of the President, Judicial Members and Technical Members of the National Bench, Regional
Benches or Technical Members (Centre) of the State Bench or Area Benches, andthe State
Government may, after consultation with the Chief Justice of High Court, in case of the State
President, Judicial Members, Technical Members (State) of the State Bench or Area Benches, may
remove from the office such President or Member, who -
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of such Government
involves moral turpitude; or
(c) has become physically or mentally in capable of acting as such President, State
President or Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially
his functions as such President, State President or Member; or
(e) has so abused his position as to render his continuance in office prejudicial to
the public interest:
Provided that the President, State President or the Member shall not be removed on any of
the grounds specified in clauses
(d) and (e), unless he has been informed of the charges against him and has been
given an opportunity of being heard.
(14) Without prejudice to the provisions of sub-section (13),––
(a) the President or a Judicial and Technical Member of the National Bench or
Regional Benches, Technical Member (Centre) of the State Bench or Area Benches shall
not be removed from their office except by an order made by the Central Government on
the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the
Supreme Court nominated by the Chief Justice of India on a reference made to him by the
www.taxguru.in
Central Government and of which the President or the said Member had been given an
opportunity of being heard;
(b) the Judicial Member or Technical Member (State) of the State Bench or Area
Benches shall not be removed from their office except by an order made by the State
Government on the ground of proved misbehaviour or incapacity after an inquiry made by
a Judge of the concerned High Court nominated by the Chief Justice of the concerned High
Court on a reference made to him by the State Government and of which the said Member
had been given an opportunity of being heard.
(15) The Central Government, with the concurrence of the Chief Justice of India, may
suspend from office, the President or a Judicial or Technical Members of the National Bench or
the Regional Benches or the Technical Member (Centre) of the State Bench or Area Benches in
respect of whom a reference has been made to the Judge of the Supreme Court under sub-section
(14).
(16) The State Government, with the concurrence of the Chief Justice of the High Court,
may suspend from office, a Judicial Member or Technical Member (State) of the State Bench or
Area Benches in respect of whom a reference has been made to the Judge of the High Court under
sub-section (14).
(17) Subject to the provisions of article 220 of the Constitution, the President, State
President or other Members, on ceasing to hold their office, shall not be eligible to appear, act or
plead before the National Bench and the Regional Benches or the State Bench and the Area
Benches thereof where he was the President or, as the case may be, a Member.
115[Sec.111. Procedure before Appellate Tribunal.
(1) The Appellate Tribunal shall not, while disposing of any proceedings before it or an
appeal before it, be bound by the procedure laid down in the Code of Civil Procedure,1908(5 of
1908), but shall be guided by the principles of natural justice and subject to the other provisions
of this Act and the rules made thereunder, the Appellate Tribunal shall have power to regulate its
own procedure.
115.Sec.111 came into force on 01-07-2017, vide Noti.No.9/2017-CT, dt.28-06-2017.
(2) The Appellate Tribunal shall, for the purposes of discharging its functions underthis
Act, have the same powers as are vested in a civil court under the Code of Civil Procedure,1908
(5 of 1908), while trying a suit in respect of the following matters, namely: —
(a) summoning and enforcing the attendance of any person and examining him
on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
www.taxguru.in
(d) subject to the provisions of sections 123 and 124 of the Indian EvidenceAct,
1872(1 of 1872), requisitioning any public record or document or a copy of such record or
document from any office;
(e) issuing commissions for the examination of witnesses or documents;
(f) dismissing a representation for default or deciding it exparte;
(g) setting aside any order of dismissal of any representation for default or any order
passed by it exparte; and
(h) any other matter which may be prescribed.
(3) Any order made by the Appellate Tribunal may be enforced by it in the same manner
as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the
Appellate Tribunal to send for execution of its orders to the court within the local limits of whose
jurisdiction, —
(a) in the case of an order against a company, the registered office of the companyis
situated; or
(b) in the case of an order against any other person, the person concerned
voluntarily resides or carries on business or personally works for gain.
(4) All proceedings before the Appellate Tribunal shall be deemed to be judicial
proceedings within the meaning of sections 193 and 228, and for the purposes of section 196 of
the Indian Penal Code(45 of 1860), and the Appellate Tribunal shall be deemed to be civil court
for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 ( 2 of
1974).
116[Sec.112. Appeals to Appellate Tribunal.
(1) Any person aggrieved by an order passed against him under section 107 or section 108
of this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services
Tax Act may appeal to the Appellate Tribunal against such order within three months from the
date on which the order sought to be appealed against is communicated to the person preferring
the appeal.
116.Sec.112 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The Appellate Tribunal may, in its discretion, refuse to admit any such appeal where
the tax or input tax credit involved or the difference in tax or input tax credit involved or the
amount of fine, fee or penalty determined by such order, does not exceed fifty thousand rupees.
(3) The Commissioner may, on his own motion, or upon request from the Commissioner
of State tax or Commissioner of Union territory tax, call for and examine the record of any order
passed by the Appellate Authority or the Revisional Authority under this Act or the State Goods
and Services Tax Act or the Union Territory Goods and Services Tax Act for the purpose of
www.taxguru.in
satisfying himself as to the legality or propriety of the said order and may, by order, direct any
officer subordinate to him to apply to the Appellate Tribunal within six months from the date on
which the said order has been passed for determination of such points arising out of the said order
as may be specified by the Commissioner in his order.
(4) Where in pursuance of an order under sub-section (3) the authorised officer makes an
application to the Appellate Tribunal, such application shall be dealt with by the AppellateTribunal
as if it were an appeal made against the order under sub-section (11) of section 107or under sub-
section (1) of section 108 and the provisions of this Act shall apply to such application, as they
apply in relation to appeals filed under sub-section (1).
(5) On receipt of notice that an appeal has been preferred under this section, the party
against whom the appeal has been preferred may, notwithstanding that he may not have appealed
against such order or any part thereof, file, within forty-five days of the receipt of notice, a
memorandum of cross-objections, verified in the prescribed manner, against any part of the order
appealed against and such memorandum shall be disposed of by theAppellate Tribunal, as if it
were an appeal presented within the time specified in sub-section (1).
(6) The Appellate Tribunal may admit an appeal within three months after the expiry of
the period referred to in sub-section (1), or permit the filing of a memorandum of cross-objections
within forty-five days after the expiry of the period referred to in sub-section (5) if it is satisfied
that there was sufficient cause for not presenting it within that period.
(7) An appeal to the Appellate Tribunal shall be in such form, verified in such manner and
shall be accompanied by such fee, as may be prescribed.
(8) No appeal shall be filed under sub-section (1), unless the appellant has paid––
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising
from the impugned order, as is admitted by him, and
(b) a sum equal to twenty percent of the remaining amount of tax in dispute, in
addition to the amount paid under sub-section (6) of section 107, arising from the said
order116a[ subject to a maximum of fifty crore rupees ], in relation to which the appeal has
been filed.
116a.Inserted the words by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(9) Where the appellant has paid the amount as per sub-section (8), the recovery
proceedings for the balance amount shall be deemed to be stayed till the disposal of the appeal.
(10) Every application made before the Appellate Tribunal, —
(a) in an appeal for rectification of error or for any other purpose; or
www.taxguru.in
(b) for restoration of an appeal or an application, shall be accompanied by such fees
as may be prescribed.
117[Sec.113. Orders of Appellate Tribunal.
(1) The Appellate Tribunal may, after giving the parties to the appeal an opportunity of
being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the
decision or order appealed against or may refer the case back to the Appellate Authority, or the
Revisional Authority or to the original adjudicating authority, with such directions as it may think
fit, for a fresh adjudication or decision after taking additional evidence, if necessary.
117.Sec.113 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
(2) The Appellate Tribunal may, if sufficient cause is shown, at any stage of hearing of an
appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons
to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during
hearing of the appeal.
(3) The Appellate Tribunal may amend any order passed by it under sub-section (1) so as
to rectify any error apparent on the face of the record, if such error is noticed by it on its own
accord, or is brought to its notice by the Commissioner or the Commissioner of State tax or the
Commissioner of the Union territory tax or the other party to the appeal within a period of three
months from the date of the order:
Provided that no amendment which has the effect of enhancing an assessment or reducing
a refund or input tax credit or otherwise increasing the liability of the other party, shall be made
under this sub-section, unless the party has been given an opportunity of being heard.
(4) The Appellate Tribunal shall, as far as possible, hear and decide every appeal within a
period of one year from the date on which it is filed.
(5) The Appellate Tribunal shall send a copy of every order passed under this section to
the Appellate Authority or the Revisional Authority, or the original adjudicating authority, as the
case may be, the appellant and the jurisdictional Commissioner or the Commissioner of State tax
or the Union territory tax.
(6) Save as provided in section 117 or section 118, orders passed by the AppellateTribunal
on an appeal shall be final and binding on the parties.
118[Sec.114. Financial and administrative powers of President.
The President shall exercise such financial and administrative powers over the National
Bench and Regional Benches of the Appellate Tribunal as may be prescribed:
Provided that the President shall have the authority to delegate such of his financial and
administrative powers as he may think fit to any other Member or any officer of the National Bench
and Regional Benches, subject to the condition that such Member or officer shall, while exercising
www.taxguru.in
such delegated powers, continue to act under the direction, control and supervision of the
President.
118.Sec.114 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
119[Sec.115. Interest on refund of amount paid for admission of appeal.
Where an amount paid by the appellant under sub-section (6) of section 107 or sub-section
(8) of section 112 is required to be refunded consequent to any order of the Appellate Authority or
of the Appellate Tribunal, interest at the rate specified under section 56 shall be payable in respect
of such refund from the date of payment of the amount till the date of refund of such amount.
119.Sec.115 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
120[Sec.116. Appearance by authorised representative.
(1) Any person who is entitled or required to appear before an officer appointed under
this Act, or the Appellate Authority or the Appellate Tribunal in connection with any proceedings
under this Act, may, otherwise than when required under this Act to appear personally for
examination on oath or affirmation, subject to the other provisions of this section, appear by an
authorised representative.
120.Sec.116 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) For the purposes of this Act, the expression “authorised representative” shall mean a
person authorised by the person referred to in sub-section (1) to appear on his behalf, being—
(a) his relative or regular employee; or
(b) an advocate who is entitled to practice in any court in India, and who has not
been debarred from practicing before any court in India; or
(c) any chartered accountant, a cost accountant or a company secretary, who holds
a certificate of practice and who has not been debarred from practice; or
(d) a retired officer of the Commercial Tax Department of any State Government
or Union territory or of the Board who, during his service under the Government,
had worked in a post not below the rank than that of a Group-B Gazetted officer for
a period of not less than two years:
Provided that such officer shall not be entitled to appear before any proceedings
under this Act for a period of one year from the date of his retirement or resignation; or
(e) any person who has been authorised to act as a goods and services tax
practitioner on behalf of the concerned registered person.
(3) No person, —
(a) who has been dismissed or removed from Government service; or
(b) who is convicted of an offence connected with any proceedings under this Act,
the State Goods and Services Tax Act, the Integrated Goods and Services Tax Act
www.taxguru.in
or the Union Territory Goods and Services Tax Act, or under the existing law or
under any of the Acts passed by a State Legislature dealing with the imposition of
taxes on sale of goods or supply of goods or services or both; or
(c) who is found guilty of misconduct by the prescribed authority;
(d) who has been adjudged as an insolvent, shall be qualified to represent any
person under sub-section (1)—
(i) for all times in case of persons referred to in clauses (a), (b) and (c); and
(ii) for the period during which the insolvency continues in the case of a
person referred to in clause (d).
(4) Any person who has been disqualified under the provisions of the State Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to
be disqualified under this Act.
121[Sec.117. Appeal to High Court.
(1) Any person aggrieved by any order passed by the State Bench or Area Benches of the
Appellate Tribunal may file an appeal to the High Court and the High Court may admit such
appeal, if it is satisfied that the case involves a substantial question of law.
121.Sec.117 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) An appeal under sub-section (1) shall be filed within a period of one hundred and eighty
days from the date on which the order appealed against is received by the aggrieved person
and it shall be in such form, verified in such manner as may be prescribed:
Provided that the High Court may entertain an appeal after the expiry of the said period if
it is satisfied that there was sufficient cause for not filing it within such period.
(3) Where the High Court is satisfied that a substantial question of law is involved in any
case, it shall formulate that question and the appeal shall be heard only on the question so
formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that
the case does not involve such question:
Provided that nothing in this sub-section shall be deemed to take away or a bridge the
power of the court to hear, for reasons to be recorded, the appeal on any other substantial question
of law not formulated by it, if it is satisfied that the case involves such question.
(4) The High Court shall decide the question of law so formulated and deliver such
judgment thereon containing the grounds on which such decision is founded and may award such
cost as it deems fit.
(5) The High Court may determine any issue which––
(a) has not been determined by the State Bench or Area Benches; or
www.taxguru.in
(b) has been wrongly determined by the State Bench or Area Benches, by reason of
a decision on such question of law as herein referred to in sub-section (3).
(6) Where an appeal has been filed before the High Court, it shall be heard by a Bench of
not less than two Judges of the High Court, and shall be decided in accordance with the opinion of
such Judges or of the majority, if any, of such Judges.
(7) Where there is no such majority, the Judges shall state the point of law upon which they
differ and the case shall, then, be heard upon that point only, by one or more of the other Judges
of the High Court and such point shall be decided according to the opinion of the majority of the
Judges who have heard the case including those who first heard it.
(8) Where the High Court delivers a judgment in an appeal filed before it under this section,
effect shall be given to such judgment by either side on the basis of a certified copy of the
judgment.
(9) Save as otherwise provided in this Act, the provisions of the Code of Civil
Procedure,1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in
the case of appeals under this section. 122[Sec.118. Appeal to Supreme Court.
(1) An appeal shall lie to the Supreme Court—
(a) from any order passed by the National Bench or Regional Benches of the Appellate
Tribunal; or
122.Sec.118 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(b) from any judgment or order passed by the High Court in an appeal made under section
117 in any case which, on its own motion or on an application made by or on behalf of the party
aggrieved, immediately after passing of the judgment or order, the High Court certifies to be a fit
one for appeal to the Supreme Court.
(2) The provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court
shall, so far as may be, apply in the case of appeals under this section as they apply in the case of
appeals from decrees of a High Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given
to the order of the Supreme Court in the manner provided in section 117 in the case of a judgment
of the High Court.
123[Sec.119. Sums due to be paid notwithstanding appeal, etc.
Notwithstanding that an appeal has been preferred to the High Court or the Supreme Court,
sums due to the Government as a result of an order passed by the National or Regional Benches
of the Appellate Tribunal under sub-section (1) of section 113 or an order passed by the State
Bench or Area Benches of the Appellate Tribunal under sub-section (1) of section 113 or an order
www.taxguru.in
passed by the High Court under section 117, as the case may be, shall be payable in accordance
with the order so passed.
123.Sec.119 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
124[Sec.120. Appeal not to be filed in certain cases.
(1) The Board may, on the recommendations of the Council, from time to time, issue orders
or instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of
regulating the filing of appeal or application by the officer of the central tax under the provisions
of this Chapter.
124.Sec.120 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Where, in pursuance of the orders or instructions or directions issued under sub-section
(1), the officer of the central tax has not filed an appeal or application against any decision or order
passed under the provisions of this Act, it shall not preclude such officer of the central tax from
filing appeal or application in any other case involving the same or similar issues or questions of
law.
(3) Notwithstanding the fact that no appeal or application has been filed by the officer of
the central tax pursuant to the orders or instructions or directions issued under sub-section (1), no
person, being a party in appeal or application shall contend that the officer of the central tax has
acquiesced in the decision on the disputed issue by not filing an appeal or application.
(4) The Appellate Tribunal or court hearing such appeal or application shall have regard to
the circumstances under which appeal or application was not filed by the officer of the central tax
in pursuance of the orders or instructions or directions issued under sub-section (1).
125[Sec.121. Non-appealable decisions and orders.
Notwithstanding anything to the contrary in any provisions of this Act, no appeal shall lie
against any decision taken or order passed by an officer of central tax if such decision taken or
order passed relates to any one or more of the following matters, namely: —
(a) an order of the Commissioner or other authority empowered to direct transfer of
proceedings from one officer to another officer; or
(b) an order pertaining to the seizure or retention of books of account, register and other
documents; or
(c) an order sanctioning prosecution under this Act; or
(d) an order passed under section 80.
125.Sec.121 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
www.taxguru.in
CHAPTER XIX
OFFENCES AND PENALTIES
126[Sec.122. Penalty for certain offences.
(1) Where a taxable person who––
126.Sec.122 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(i) supplies any goods or services or both without issue of any invoice or issues an incorrect
or false invoice with regard to any such supply;
(ii) issues any invoice or bill without supply of goods or services or both in violation of the
provisions of this Act or the rules made thereunder;
(iii) collects any amount as tax but fails to pay the same to the Government beyond a period
of three months from the date on which such payment becomes due;
(iv) collects any tax in contravention of the provisions of this Act but fails to pay the same
to the Government beyond a period of three months from the date on which such payment becomes
due;
(v) fails to deduct the tax in accordance with the provisions of sub-section (1) of section
51, or deducts an amount which is less than the amount required to be deducted under the said sub-
section, or where he fails to pay to the Government under sub-section (2) thereof, the amount
deducted as tax;
(vi) fails to collect tax in accordance with the provisions of sub-section (1) of section 52,
or collects an amount which is less than the amount required to be collected under the said sub-
section or where he fails to pay to the Government the amount collected as tax under sub-section
(3) of section 52;
www.taxguru.in
(vii) takes or utilises input tax credit without actual receipt of goods or services or both
either fully or partially, in contravention of the provisions of this Act or the rules made thereunder;
(viii) fraudulently obtains refund of tax under this Act;
(ix) takes or distributes input tax credit in contravention of section 20, or the rules made
thereunder;
(x) falsifies or substitutes financial records or produces fake accounts ordocuments or
furnishes any false information or return with an intention to evadepayment of tax due under this
Act;
(xi) is liable to be registered under this Act but fails to obtain registration;
(xii) furnishes any false information with regard to registration particulars, either at the
time of applying for registration, or subsequently;
(xiii) obstructs or prevents any officer in discharge of his duties under this Act;
(xiv) transports any taxable goods without the cover of documents as may be specified in
this behalf;
(xv) suppresses his turnover leading to evasion of tax under this Act;
(xvi) fails to keep, maintain or retain books of account and other documents in accordance
with the provisions of this Act or the rules made thereunder;
(xvii) fails to furnish information or documents called for by an officer in accordance with
the provisions of this Act or the rules made thereunder or furnishes false information or documents
during any proceedings under this Act;
(xviii) supplies, transports or stores any goods which he has reasons to believe are liable to
confiscation under this Act;
(xix) issues any invoice or document by using the registration number of another registered
person;
(xx) tampers with, or destroys any material evidence or document;
(xxi) disposes off or tampers with any goods that have been detained, seized, or attached
under this Act,
he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the taxevaded
or the tax not deducted under section 51 or short deducted or deducted but not paidto the
Government or tax not collected under section 52 or short collected or collected butnot paid to the
Government or input tax credit availed of or passed on or distributed irregularly,or the refund
claimed fraudulently, whichever is higher.
www.taxguru.in
(2) Any registered person who supplies any goods or services or both on which anytax has
not been paid or short-paid or erroneously refunded, or where the input tax credit hasbeen wrongly
availed or utilised, —
(a) for any reason, other than the reason of fraud or any wilful misstatement or
suppression of facts to evade tax, shall be liable to a penalty of ten thousand rupees orten
percent of the tax due from such person, whichever is higher;
(b) for reason of fraud or any wilful misstatement or suppression of facts toevade
tax, shall be liable to a penalty equal to ten thousand rupees or the tax due fromsuch person,
whichever is higher.
(3) Any person who––
(a) aids or abets any of the offences specified in clauses (i) to (xxi) of sub-section
(1);
(b) acquires possession of, or in any way concerns himself in
transporting,removing, depositing, keeping, concealing, supplying, or purchasing or in any
othermanner deals with any goods which he knows or has reasons to believe are liable
toconfiscation under this Act or the rules made thereunder;
(c) receives or is in any way concerned with the supply of, or in any othermanner
deals with any supply of services which he knows or has reasons to believeare in
contravention of any provisions of this Act or the rules made thereunder;
(d) fails to appear before the officer of central tax, when issued with a summonfor
appearance to give evidence or produce a document in an inquiry;
(e) fails to issue invoice in accordance with the provisions of this Act or the
rulesmade thereunder or fails to account for an invoice in his books of account,
shall be liable to a penalty which may extend to twenty-five thousand rupees.
127[Sec.123. Penalty for failure to furnish information return.
If a person who is required to furnish an information return under section 150 fails to do
so within the period specified in the notice issued under sub-section (3) thereof, the proper officer
may direct that such person shall be liable to pay a penalty of one hundred rupees for each day of
the period during which the failure to furnish such return continues:
Provided that the penalty imposed under this section shall not exceed five thousand rupees. 127.Sec.123 came into force on 01-07-2017, vide Noti.9/2017-CT, dt.28-06-2017.
www.taxguru.in
128[Sec.124. Fine for failure to furnish statistics.
If any person required to furnish any information or return under section 151, -
(a) without reasonable cause fails to furnish such information or return as may be required
under that section, or
(b) wilfully furnishes or causes to furnish any information or return which he knows to be
false,
he shall be punishable with a fine which may extend to ten thousand rupees and in case of
acontinuing offence to a further fine which may extend to one hundred rupees for each day after
the first day during which the offence continues subject to a maximum limit of twenty five
thousand rupees. 128.Sec.124 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
129[Sec.125. General penalty.
Any person, who contravenes any of the provisions of this Act or any rules made
thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty
which may extend to twenty-five thousand rupees.
129.Sec.125 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
130[Sec.126. General disciplines related to penalty.
(1) No officer under this Act shall impose any penalty for minor breaches of tax regulations
or procedural requirements and in particular, any omission or mistake in documentation which is
easily rectifiable and made without fraudulent intent or gross negligence.
Explanation. –– For the purpose of this sub-section, ––
(a) a breach shall be considered a ‘minor breach’ if the amount of tax involved is
less than five thousand rupees;
(b) an omission or mistake in documentation shall be considered to be easily
rectifiable if the same is an error apparent on the face of record. 130.Sec.126 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The penalty imposed under this Act shall depend on the facts and circumstances of each
case and shall be commensurate with the degree and severity of the breach.
(3) No penalty shall be imposed on any person without giving him an opportunity of being
heard.
www.taxguru.in
(4) The officer under this Act shall while imposing penalty in an order for a breach of any
law, regulation or procedural requirement, specify the nature of the breach and the applicable law,
regulation or procedure under which the amount of penalty for the breach has been specified.
(5) When a person voluntarily discloses to an officer under this Act the circumstances of a
breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by
the officer under this Act, the proper officer may consider this fact as a mitigating fact or when
quantifying a penalty for that person.
(6) The provisions of this section shall not apply in such cases where the penalty specified
under this Act is either a fixed sum or expressed as a fixed percentage.
131[Sec.127. Power to impose penalty in certain cases.
Where the proper officer is of the view that a person is liable to a penalty and the same is
not covered under any proceedings under section 62 or section 63 or section 64 or section 73 or
section 74 or section 129 or section 130, he may issue an order levying such penalty after giving a
reasonable opportunity of being heard to such person.
131.Sec.127 came into force on 01-07-2017, vide Noti.No.9/2017-CT, dt.28-06-2017.
132[Sec.128. Power to waive penalty or fee or both.
The Government may, by notification, waive in part or full, any penalty referred to in
section 122 or section 123 or section 125 or any late fee referred to in section 47 for such class of
taxpayers and under such mitigating circumstances as may be specified therein on the
recommendations of the Council.
132.Sec.128 came into force on 01-07-2017, vide Noti.No.9/2017-CT, dt.28-06-2017.
133[Sec.129. Detention seizure and release of goods and conveyances in transit.
(1) Notwithstanding anything contained in this Act, where any person transports any goods
or stores any goods while they are in transit in contravention of the provisions of this Act or the
rules made thereunder, all such goods and conveyance used as a means of transport for carrying
the said goods and documents relating to such goods and conveyance shall be liable to detention
or seizure and after detention or seizure, shall be released,–
(a) on payment of the applicable tax and penalty equal to one hundred per cent. of
the tax payable on such goods and, in case of exempted goods, on payment of an amount
equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever
is less, where the owner of the goods comes forward for payment of such tax and penalty;
(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the
value of the goods reduced by the tax amount paid thereon and, in case of exempted goods,
on payment of an amount equal to five percent of the value of goods or twenty-five
thousand rupees, whichever is less, where the owner of the goods does not come forward
for payment of such tax and penalty;
(c) upon furnishing a security equivalent to the amount payable under clause (a)
www.taxguru.in
or clause (b) in such form and manner as may be prescribed:
Provided that no such goods or conveyance shall be detained or seized without serving an
order of detention or seizure on the person transporting the goods.
133.Sec.129 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply
for detention and seizure of goods and conveyances.
(3) The proper officer detaining or seizing goods or conveyances shall issue a notice
specifying the tax and penalty payable and thereafter, pass an order for payment of tax and
penalty under clause (a) or clause (b) or clause (c).
(4) No tax, interest or penalty shall be determined under sub-section (3) without
giving the person concerned an opportunity of being heard.
(5) On payment of amount referred in sub-section (1), all proceedings in respect of
the notice specified in sub-section (3) shall be deemed to be concluded.
(6) Where the person transporting any goods or the owner of the goods fails to pay
the amount of tax and penalty as provided in sub-section (1) within133a
[fourteen days] of such
detention or seizure, further proceedings shall be initiated in accordance with the provisions
of section 130: 133a. Subs for the words “seven days” by the CGST (Amendment) Act,2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
Provided that where the detained or seized goods are perishable or hazardous in
nature or are likely to depreciate in value with passage of time, the said period of seven
days may be reduced by the proper officer.
134[Sec.130. Confiscation of goods or conveyances and levy of penalty.
(1) Notwithstanding anything contained in this Act, if any person—
134.Sec.130 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(i) supplies or receives any goods in contravention of any of the provisions of this
Act or the rules made thereunder with intent to evade payment of tax; or
(ii) does not account for any goods on which he is liable to pay tax under this
Act; or
(iii) supplies any goods liable to tax under this Act without having applied for
registration; or
www.taxguru.in
(iv) contravenes any of the provisions of this Act or the rules made thereunder with
intent to evade payment of tax; or
(v) uses any conveyance as a means of transport for carriage of goods in
contravention of the provisions of this Act or the rules made thereunder unless the owner
of the conveyance proves that it was so used without the knowledge or connivance of the
owner himself, his agent, if any, and the person in charge of the conveyance,
then, all such goods or conveyances shall be liable to confiscation and the person
shall be liable to penalty under section 122.
(2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer
adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine
as the said officer thinks fit:
Provided that such fine leviable shall not exceed the market value of the goods confiscated,
less the tax chargeable thereon:
Provided further that the aggregate of such fine and penalty leviable shall not be less than
the amount of penalty leviable under sub-section (1) of section 129:
Provided also that where any such conveyance is used for the carriage of the goods or
passengers for hire, the owner of the conveyance shall be given an option to pay in lieu ofthe
confiscation of the conveyance a fine equal to the tax payable on the goods being transported
thereon.
(3) Where any fine in lieu of confiscation of goods or conveyance is imposed undersub-
section (2), the owner of such goods or conveyance or the person referred to in sub-section (1),
shall, in addition, be liable to any tax, penalty and charges payable in respectof such goods or
conveyance.
(4) No order for confiscation of goods or conveyance or for imposition of penalty shall be
issued without giving the person an opportunity of being heard.
(5) Where any goods or conveyance are confiscated under this Act, the title of such goods
or conveyance shall thereupon vest in the Government.
(6) The proper officer adjudging confiscation shall take and hold possession of the things
confiscated and every officer of Police, on the requisition of such proper officer, shall assist him
in taking and holding such possession.
(7) The proper officer may, after satisfying himself that the confiscated goods or
conveyance are not required in any other proceedings under this Act and after giving reasonable
www.taxguru.in
time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or
conveyance and deposit the sale proceeds thereof with the Government.
135[Sec.131. Confiscation or penalty not to interfere with other punishments.
Without prejudice to the provisions contained in the Code of Criminal Procedure,1973(2
of 1974), no confiscation made or penalty imposed under the provisions of this Act or the rules
made thereunder shall prevent the infliction of any other punishment to which the person affected
thereby is liable under the provisions of this Act or under any other law for the time being in force.
135.Sec.131 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
136[Sec.132. Punishment for certain offences.
(1) Whoever commits any of the following offences, namely: —
136.Sec.132 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(a) supplies any goods or services or both without issue of any invoice, in violation of the
provisions of this Act or the rules made thereunder, with the intention to evade tax;
(b) issues any invoice or bill without supply of goods or services or both in violation of the
provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of
input tax credit or refund of tax;
(c) avails input tax credit using such invoice or bill referred to in clause (b);
(d) collects any amount as tax but fails to pay the same to the Government beyond a period
of three months from the date on which such payment becomes due;
(e) evades tax, fraudulently avails input tax credit or fraudulently obtains refund and where
such offence is not covered under clauses (a) to (d);
(f) falsifies or substitutes financial records or produces fake accounts or documents or
furnishes any false information with an intention to evade payment of tax due under this Act;
(g) obstructs or prevents any officer in the discharge of his duties under this Act;
(h) acquires possession of, or in any way concerns himself in transporting removing,
depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any
goods which he knows or has reasons to believe are liable to confiscation under this Act or the
rules made thereunder;
(i) receives or is in any way concerned with the supply of, or in any other manner deals
with any supply of services which he knows or has reasons to believe are in contravention of any
provisions of this Act or the rules made thereunder;
(j) tampers with or destroys any material evidence or documents;
www.taxguru.in
(k) fails to supply any information which he is required to supply under this Act or the rules
made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon
him, that the information supplied by him is true) supplies false information; or
(l) attempts to commit, or abets the commission of any of the offences mentioned in clauses
(a) to (k) of this section, shall be punishable ––
(i) in cases where the amount of tax evaded or the amount of input tax credit wrongly
availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees,
with imprisonment for a term which may extend to five years and with fine;
(ii) in cases where the amount of tax evaded or the amount of input tax credit
wrongly availed or utilised or the amount of refund wrongly taken exceeds two
hundredlakh rupees but does not exceed five hundred lakh rupees, with imprisonment for
aterm which may extend to three years and with fine;
(iii) in the case of any other offence where the amount of tax evaded or the amount
of input tax credit wrongly availed or utilised or the amount of refund wrongly taken
exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees, with
imprisonment for a term which may extend to one year and with fine;
(iv) in cases where he commits or abets the commission of an offence specified in
clause (f) or clause (g) or clause (j), he shall be punishable with imprisonment for a term
which may extend to six months or with fine or with both.
(2) Where any person convicted of an offence under this section is again convicted of
An offence under this section, then, he shall be punishable for the second and
for every subsequent offence with imprisonment for a term which may extend to
five years and with fine.
(3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and sub-
section (2) shall, in the absence of special and adequate reasons to the contrary to be
recorded in the judgment of the Court, be for a term not less than six months.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of
1974), all offences under this Act, except the offences referred to in sub-section (5) shall
be non-cognizable and bailable.
(5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-
section (1) and punishable under clause (i) of that sub-section shall be cognizable and non-
bailable.
(6) A person shall not be prosecuted for any offence under this section except with the
previous sanction of the Commissioner.
www.taxguru.in
Explanation.— For the purposes of this section, the term “tax” shall include the amount of
tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly taken
under the provisions of this Act, the State Goods and Services Tax Act, the Integrated Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act and cess levied under the
Goods and Services Tax (Compensation to States) Act.
137[Sec.133. Liability of officers and certain other persons.
(1) Where any person engaged in connection with the collection of statistics under section
151 or compilation or computerisation thereof or if any officer of central tax having access to
information specified under sub-section (1) of section 150, or if any person engaged in connection
with the provision of service on the common portal or the agent of common portal, wilfully
discloses any information or the contents of any return furnished under this Act or rules made
thereunder otherwise than in execution of his duties under the said sections or for the purposes of
prosecution for an offence under this Act or under any other Act for the time being in force, he
shall be punishable with imprisonment for a term which may extend to six months or with fine
which may extend to twenty-five thousand rupees, or with both.
137.Sec.133 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Any person —
(a) who is a Government servant shall not be prosecuted for any offence under this
section except with the previous sanction of the Government;
(b) who is not a Government servant shall not be prosecuted for any offence under
this section except with the previous sanction of the Commissioner. 138[Sec.134. Cognizance of offences.
No court shall take cognizance of any offence punishable under this Act or the rules made
thereunder except with the previous sanction of the Commissioner, and no court inferior to that of
a Magistrate of the First Class, shall try any such offence.
138.Sec.134 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
139[Sec.135. Presumption of culpable mental state.
In any prosecution for an offence under this Act which requires a culpable mental state on
the part of the accused, the court shall presume the existence of such mental state but it shall be a
defence for the accused to prove the fact that he had no such mental state with respect to the act
charged as an offence in that prosecution.
139.Sec.135 came into force on 01-07-2017, vide Noto. No.9/2017-CT,dt.28-06-2017.
Explanation—For the purposes of this section, –
(i) the expression “culpable mental state” includes intention, motive, knowledge of
a fact, and belief in, or reason to believe, a fact;
www.taxguru.in
(ii) a fact is said to be proved only when the court believes it to exist beyond
reasonable doubt and not merely when its existence is established by a
preponderance of probability.
140[Sec.136. Relevancy of statements under certain circumstances.
A statement made and signed by a person on appearance in response to any summons
issued under section 70 during the course of any inquiry or proceedings under this Act shall be
relevant, for the purpose of proving, in any prosecution for an offence under this Act, the truth of
the facts which it contains, –
140.Sec.136 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(a) when the person who made the statement is dead or cannot be found, or is
incapable of giving evidence, or is kept out of the way by the adverse party, or whose
presence cannot be obtained without an amount of delay or expense which, under the
circumstances of the case, the court considers unreasonable; or
(b) when the person who made the statement is examined as a witness in the case
before the court and the court is of the opinion that, having regard to the circumstances of
the case, the statement should be admitted in evidence in the interest of justice.
141[Sec.137. Offences by companies.
(1) Where an offence committed by a person under this Act is a company, every person
who, at the time the offence was committed was in charge of, and was responsible to, the company
for the conduct of business of the company, as well as the company, shall be deemed to be guilty
of the offence and shall be liable to be proceeded against and punished accordingly.
141.Sec.137 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act
has been committed by a company and it is proved that the offence has been committed with the
consent or connivance of, or is attributable to any negligence on the part of, any director, manager,
secretary or other officer of the company, such director, manager, secretary or other officer shall
also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished
accordingly.
(3) Where an offence under this Act has been committed by a taxable person being a
partnership firm or a Limited Liability Partnership or a Hindu Undivided Family or a trust, the
partner or karta or managing trustee shall be deemed to be guilty of that offence and shall be liable
to be proceeded against and punished accordingly and the provisions of sub-section (2) shall,
mutatis mutandis, apply to such persons.
(4) Nothing contained in this section shall render any such person liable to any punishment
provided in this Act, if he proves that the offence was committed without his knowledge or that he
had exercised all due diligence to prevent the commission of such offence.
Explanation. –– For the purposes of this section, ––
www.taxguru.in
(i) “company” means a body corporate and includes a firm or other
association of individuals; and
(ii) “director”, in relation to a firm, means a partner in the firm.
142[Sec.138. Compounding of offences.
(1) Any offence under this Act may, either before or after the institution of prosecution,
be compounded by the Commissioner on payment, by the person accused of the offence, to the
Central Government or the State Government, as the case be, of such compounding amount in
such manner as may be prescribed:
142.Sec.138 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
Provided that nothing contained in this section shall apply to—
(a) a person who has been allowed to compound once in respect of any of the
offences specified in clauses (a) to (f) of sub-section (1) of section 132 and the offences
specified in clause (l) which are relatable to offences specified in clauses (a) to (f) of the
said sub-section;
(b) a person who has been allowed to compound once in respect of any offence,
other than those in clause (a), under this Act or under the provisions of any State Goods
and Services Tax Act or the Union Territory Goods and Services Tax Act or the Integrated
Goods and Services Tax Act in respect of supplies of value exceeding one crore rupees;
(c) a person who has been accused of committing an offence under this Act which
is also an offence under any other law for the time being in force;
(d) a person who has been convicted for an offence under this Act by a court;
(e) a person who has been accused of committing an offence specified in clause (g)
or clause (j) or clause (k) of sub-section (1) of section 132; and
(f) any other class of persons or offences as may be prescribed:
Provided further that any compounding allowed under the provisions of this section
shall not affect the proceedings, if any, instituted under any other law:
Provided also that compounding shall be allowed only after making payment of tax,
interest and penalty involved in such offences.
(2) The amount for compounding of offences under this section shall be such as may be
prescribed, subject to the minimum amount not being less than ten thousand rupees or fifty percent
of the tax involved, whichever is higher, and the maximum amount not being less than thirty
thousand rupees or one hundred and fifty percent of the tax, whichever is higher.
www.taxguru.in
(3) On payment of such compounding amount as may be determined by the Commissioner,
no further proceedings shall be initiated under this Act against the accused person in respect of the
same offence and any criminal proceedings, if already initiated in respect of the said offence, shall
stand abated.
CHAPTER XX
TRANSITIONAL PROVISIONS
143[Sec.139. Migration of existing taxpayers
(1) On and from the appointed day, every person registered under any of the existing laws
and having a valid Permanent Account Number shall be issued a certificate of registration on
provisional basis, subject to such conditions and in such form and manner as may be prescribed,
which unless replaced by a final certificate of registration under sub-section (2), shall be liable to
be cancelled if the conditions so prescribed are not complied with.
143.Sec.139 came into force on 22-06-2017, vide Noti. No.1/2017-CT, dt.19-06-2017.
(2) The final certificate of registration shall be granted in such form and manner
and subject to such conditions as may be prescribed.
(3) The certificate of registration issued to a person under sub-section (1) shall be
deemed to have not been issued if the said registration is cancelled in pursuance of an
application filed by such person that he was not liable to registration under section 22 or
section 24. 144[Sec.140. Transitional arrangements for input tax credit
(1) A registered person, other than a person opting to pay tax under section 10, shall
be entitled to take, in his electronic credit ledger, the amount of CENVAT credit 144a [ of eligible
duties] carried forward in the return relating to the period ending with the day immediately
preceding the appointed day, furnished by him under the existing law in such manner as may be
prescribed:
Provided that the registered person shall not be allowed to take credit in the following
circumstances, namely: —
(i) where the said amount of credit is not admissible as input tax credit under this
Act; or
(ii) where he has not furnished all the returns required under the existing law for
the period of six months immediately preceding the appointed date; or
(iii) where the said amount of credit relates to goods manufactured and cleared
under such exemption notifications as are notified by the Government. 144.Sec.140 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017. 144a. Inserted for words by the CGST (Amendment) Act,2018, (No.31 of 2018), dt.30.08.2018, w.e.f. 01-07-2017
www.taxguru.in
(2) A registered person, other than a person opting to pay tax under section 10, shall be
entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect
of capital goods, not carried forward in a return, furnished under the existing law by him, for the
period ending with the day immediately preceding the appointed day in such manner as may be
prescribed:
Provided that the registered person shall not be allowed to take credit unless the
said credit was admissible as CENVAT credit under the existing law and is also admissible
as inputtax credit under this Act.
Explanation.––For the purposes of this sub-section, the expression “unavailed CENVAT credit”
means the amount that remains after subtracting the amount of CENVAT credit already availed in
respect of capital goods by the taxable person under the existing law from the aggregate amount
of CENVAT credit to which the said person was entitled in respect of the said capital goods under
the existing law.
(3) A registered person, who was not liable to be registered under the existing law, or who was
engaged in the manufacture of exempted goods or provision of exempted services,or who was
providing works contract service and was availing of the benefit of notification No.26/2012—
Service Tax, dated the 20thJune, 2012 or a first stage dealer or a second stage dealer or a registered
importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit
of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished
goods held in stock on the appointed day subject to the following conditions, namely:––
(i) such inputs or goods are used or intended to be used for making taxable supplies
under this Act;
(ii) the said registered person is eligible for input tax credit on such inputs under
this Act;
(iii) the said registered person is in possession of invoice or other prescribed
documents evidencing payment of duty under the existing law in respect of such
inputs;
(iv) such invoices or other prescribed documents were issued not earlier than twelve
months immediately preceding the appointed day; and
(v) the supplier of services is not eligible for any abatement under this Act:
Provided that where a registered person, other than a manufacturer or a supplier of
services, is not in possession of an invoice or any other documents evidencing payment of
duty in respect of inputs, then, such registered person shall, subject to such conditions,
limitations and safeguards as may be prescribed, including that the said taxable person shall
pass on the benefit of such credit by way of reduced prices to the recipient, be allowed
totake credit at such rate and in such manner as may be prescribed.
www.taxguru.in
(4) A registered person, who was engaged in the manufacture of taxable as well as
exempted goods under the Central Excise Act, 1944(1 of 1944) or provision of taxable as well as
exempted services under Chapter V of the Finance Act, 1994(32 of 1994), but which are liable to
tax under this Act,shall be entitled to take, in his electronic credit ledger,—
(a) the amount of CENVAT credit carried forward in a return furnished under the
existing law by him in accordance with the provisions of sub-section (1); and
(b) the amount of CENVAT credit of eligible duties in respect of inputs held in
stock and inputs contained in semi-finished or finished goods held in stock on the
appointed day, relating to such exempted goods or services, in accordance with the
provisions of sub-section (3).
(5) A registered person shall be entitled to take, in his electronic credit ledger, credit of
eligible duties and taxes in respect of inputs or input services received on or after the appointed
day but the duty or tax in respect of which has been paid by the supplier under the existing law,
subject to the condition that the invoice or any other duty or tax paying document of the same was
recorded in the books of account of such person within a period of thirty days from the appointed
day:
Provided that the period of thirty days may, on sufficient cause being shown, be extended
by the Commissioner for a further period not exceeding thirty days:
Provided further that said registered person shall furnish a statement, in such manner as
may be prescribed, in respect of credit that has been taken under this sub-section.
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount
in lieu of the tax payable under the existing law shall be entitled to take, in his electronic
credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained
in semi-finished or finished goods held in stock on the appointed day subject tothe
following conditions, namely:––
(i) such inputs or goods are used or intended to be used for making taxable supplies
under this Act;
(ii) the said registered person is not paying tax under section 10;
(iii) the said registered person is eligible for input tax credit on such inputs under
this Act;
(iv) the said registered person is in possession of invoice or other prescribed
documents evidencing payment of duty under the existing law in respect of inputs;
and
www.taxguru.in
(v) such invoices or other prescribed documents were issued not earlier than
twelve months immediately preceding the appointed day.
(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on
account of any services received prior to the appointed day by an Input Service Distributor
shall be eligible for distribution as credit under this Act even if the invoices relating to such
services are received on or after the appointed day.
(8) Where a registered person having centralised registration under the existing law has
obtained a registration under this Act, such person shall be allowed to take, in his electronic
credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished
under the existing law by him, in respect of the period ending with the day immediately
preceding the appointed day in such manner as may be prescribed:
Provided that if the registered person furnishes his return for the period ending withthe
day immediately preceding the appointed day within three months of the appointed day,
such credit shall be allowed subject to the condition that the said return is either an original
return or a revised return where the credit has been reduced from that claimed earlier:
Provided further that the registered person shall not be allowed to take credit unless the
said amount is admissible as input tax credit under this Act:
Provided also that such credit may be transferred to any of the registered persons having
the same Permanent Account Number for which the centralised registration was obtained
under the existing law.
(9) Where any CENVAT credit availed for the input services provided under the existing
law has been reversed due to non-payment of the consideration within a period of three
months, such credit can be reclaimed subject to the condition that the registered person has
made the payment of the consideration for that supply of services within a period of three
months from the appointed day.
(10) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in such
manner as may be prescribed.
Explanation 1.—For the purposes of 144aa [ sub-sections (1), (3), (4)] and (6), the
expression“eligible duties” means– .
144aa.Subs for the word, brackets, and figures “sub-sections (3), (4)” by the CGST (Amendment) Act, 2018, No.31 of 2018, dt.30.08.2018, w.e.f. 01-07-2017
(i) the additional duty of excise leviable under section 3 of the Additional Dutiesof
Excise (Goods of Special Importance) Act, 1957(58 of 1957);
(ii) the additional duty leviable under sub-section (1) of section 3 of the
CustomsTariff Act, 1975(51 of 1975);
www.taxguru.in
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs
Tariff Act, 1975 (51 of 1975);
144b[(iv) xxxx]
144b.omitted for the words “(iv) the additional duty of excise leviable under section 3 of the Additional Duties
of Excise (Textile and Textile Articles) Act, 1978; (40 of 1978)” by the CGST (Amendment) Act,2018, ( 31 of 2018), dt.30.08.2018, w.e.f. 01-07-2017 (v) the duty of excise specified in the First Schedule to the Central Excise Tariff
Act, 1985(5 of 1986);
(vi) the duty of excise specified in the Second Schedule to the Central ExciseTariff
Act, 1985 (5 of 1986); and
(vii) the National Calamity Contingent Duty leviable under section 136 of
theFinance Act, 2001(14 of 2001),
in respect of inputs held in stock and inputs contained in semi-finished or finished
goodsheld in stock on the appointed day.
Explanation 2.—For the purposes of 144bb [ sub-sections (1) and (5)], the expression
“eligible duties and taxes” means––
(i) the additional duty of excise leviable under section 3 of the Additional Dutiesof
Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs
Tariff Act, 1975 (51 of 1975);
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs
Tariff Act, 1975 (51 of 1975);
144c[(iv) xxxx]
144bb.Subs for the word, brackets, and figures “sub-section (5)” by the CGST (Amendment) Act,2018, ( No.31 of 2018), dt.30.08.2018, w.e.f. 01-07-2017
144c.omitted for the words and figures “(iv) the additional duty of excise leviable under section 3 of the
Additional Duties of Excise (Textile and Textile Articles) Act, 1978; (40 of 1978)” by the CGST (Amendment) Act, 2018, ( No.31 of 2018), dt.30.08.2018, w.e.f. 01-07-2017 (v) the duty of excise specified in the First Schedule to the Central Excise TariffAct,
1985 (5 of 1986);
(vi) the duty of excise specified in the Second Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986);
(vii) the National Calamity Contingent Duty leviable under section 136 of the
Finance Act, 2001 (14 of 2001); and
www.taxguru.in
(viii) the service tax leviable under section 66B of the Finance Act, 1994(32 of
1994),
in respect of inputs and input services received on or after the appointed day;
144d[ Explanation 3.- For removal of doubts, it is hereby clarified that the expression
“eligible duties and taxes” excludes any cess which has not been specified in Explanation
1 or Explanation 2 and any cess which is collected as additional duty of customs under sub-
section (1) of section 3 of the Customs Tariff Act,1975 ( 51 of 1975 ).]
144d. Inserted for the words by the CGST (Amendment) Act, 2018,( No.31 of 2018), dt.30.08.2018, w.e.f. 01-07-2017
145[Sec.141. Transitional provisions relating to job work
(1) Where any inputs received at a place of business had been removed as such or removed
after being partially processed to a job worker for further processing, testing, repair, reconditioning
or any other purpose in accordance with the provisions of existing law prior to the appointed day
and such inputs are returned to the said place on or after the appointed day, no tax shall be payable
if such inputs, after completion of the job work or otherwise, are returned to the said place within
six months from the appointed day:
145.Sec.141 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
Provided that the period of six months may, on sufficient cause being shown, be extended
by the Commissioner for a further period not exceeding two months:
Provided further that if such inputs are not returned within the period specified in this sub-
section, the input tax credit shall be liable to be recovered in accordance with the provisions of
clause (a) of sub-section (8) of section 142.
(2) Where any semi-finished goods had been removed from the place of business to any
other premises for carrying out certain manufacturing processes in accordance with the provisions
of existing law prior to the appointed day and such goods (hereafter in this section referred to as
“the said goods”) are returned to the said place on or after the appointed day, no tax shall be
payable, if the said goods, after undergoing manufacturing processes or otherwise, are returned to
the said place within six months from the appointed day:
Provided that the period of six months may, on sufficient cause being shown, be extended
by the Commissioner for a further period not exceeding two months:
Provided further that if the said goods are not returned within the period specified in this
sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions
of clause (a) of sub-section (8) of section 142:
www.taxguru.in
Provided also that the manufacturer may, in accordance with the provisions of the existing
law, transfer the said goods to the premises of any registered person for the purpose of supplying
there from on payment of tax in India or without payment of tax for exports within the period
specified in this sub-section.
(3) Where any excisable goods manufactured at a place of business had been removed
without payment of duty for carrying out tests or any other process not amounting to manufacture,
to any other premises, whether registered or not, in accordance with the provisions of existing law
prior to the appointed day and such goods, are returned to the said place on or after the appointed
day, no tax shall be payable if the said goods, after undergoing tests or any other process, are
returned to the said place within six months from the appointed day:
Provided that the period of six months may, on sufficient cause being shown, be extended
by the Commissioner for a further period not exceeding two months:
Provided further that if the said goods are not returned within the period specified in this
sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions
of clause (a) of sub-section (8) of section 142:
Provided also that the manufacturer may, in accordance with the provisions of the existing
law, transfer the said goods from the said other premises on payment of tax in India or without
payment of tax for exports within the period specified in this sub-section.
(4) The tax under sub-sections (1), (2) and (3) shall not be payable, only if the manufacturer
and the job worker declare the details of the inputs or goods held in stock by the job worker on
behalf of the manufacturer on the appointed day in such form and manner and within such time as
may be prescribed.
146[Sec.142. Miscellaneous transitional provisions.
(1) Where any goods on which duty, if any, had been paid under the existing law at the time
of removal thereof, not being earlier than six months prior to the appointed day, are returned to
any place of business on or after the appointed day, the registered person shall be eligible for refund
of the duty paid under the existing law where such goods are returned by a person, other than a
registered person, to the said place of business within a period of six months from the appointed
day and such goods are identifiable to the satisfaction of the proper officer:
146.Sec.142 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
Provided that if the said goods are returned by a registered person, the return of such goods
shall be deemed to be a supply.
(2) (a) where, in pursuance of a contract entered into prior to the appointed day, the price
of any goods or services or both is revised upwards on or after the appointed day, the registered
person who had removed or provided such goods or services or both shall issue to the recipient a
supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty
days of such price revision and for the purposes of this Act such supplementary invoice or debit
note shall be deemed to have been issued in respect of an outward supply made under this Act;
www.taxguru.in
(b) where, in pursuance of a contract entered into prior to the appointed day, the
price of any goods or services or both is revised downwards on or after the
appointed day, the registered person who had removed or provided such goods
or services or both may issue to the recipient a credit note, containing such
particulars as may be prescribed, within thirty days of such price revision and
for the purposes of this Act such credit note shall be deemed to have been issued
in respect of an outward supply made under this Act:
Provided that the registered person shall be allowed to reduce his tax liability on account
of issue of the credit note only if the recipient of the credit note has reduced his input tax credit
corresponding to such reduction of tax liability.
(3) Every claim for refund filed by any person before, on or after the appointed day, for
refund of any amount of CENVAT credit, duty, tax, interest or any other amount paid under the
existing law, shall be disposed of in accordance with the provisions of existing law and any amount
eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary
contained under the provisions of existing law other than the provisions of sub-section (2) of
section 11B of the Central Excise Act, 1944(1 of 1944):
Provided that where any claim for refund of CENVAT credit is fully or partially rejected,
the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit where
the balance of the said amount as on the appointed day has been carried forward under this Act.
(4) Every claim for refund filed after the appointed day for refund of any duty or tax paid
under existing law in respect of the goods or services exported before or after the appointed day,
shall be disposed of in accordance with the provisions of the existing law:
Provided that where any claim for refund of CENVAT credit is fully or partially rejected,
the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit where
the balance of the said amount as on the appointed day has been carried forward under this Act.
(5) Every claim filed by a person after the appointed day for refund of tax paid under the
existing law in respect of services not provided shall be disposed of in accordance with the
provisions of existing law and any amount eventually accruing to him shall be paid in cash,
notwithstanding anything to the contrary contained under the provisions of existing law other than
the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 (1 of 1944).
(6) (a) every proceeding of appeal, review or reference relating to a claim for CENVAT
credit initiated whether before, on or after the appointed day under the existing law shall be
disposed of in accordance with the provisions of existing law, and any amount of credit found to
be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the
www.taxguru.in
contrary contained under the provisions of existing law other than the provisions of sub-section
(2) of section 11B of the Central Excise Act, 1944(1 of 1944) and the amount rejected, if any, shall
not be admissible as input tax credit under this Act:
Provided that no refund shall be allowed of any amount of CENVAT credit where the
balance of the said amount as on the appointed day has been carried forward under this Act;
(b) every proceeding of appeal, review or reference relating to recovery of CENVAT credit
initiated whether before, on or after the appointed day under the existing law shall be disposed of
in accordance with the provisions of existing law and if any amount of credit becomes recoverable
as a result of such appeal, review or reference, the same shall, unless recovered under the existing
law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be
admissible as input tax credit under this Act.
(7) (a) every proceeding of appeal, review or reference relating to any output duty or tax
liability initiated whether before, on or after the appointed day under the existing law, shall be
disposed of in accordance with the provisions of the existing law, and if any amount becomes
recoverable as a result of such appeal, review or reference, the same shall, unless recovered under
the existing law, be recovered as an arrear of duty or tax under this Act and the amount so recovered
shall not be admissible as input tax credit under this Act.
(b) every proceeding of appeal, review or reference relating to any output duty or tax
liability initiated whether before, on or after the appointed day under the existing law, shall be
disposed of in accordance with the provisions of the existing law, and any amount found to be
admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the
contrary contained under the provisions of existing law other than the provisions of sub-section
(2) of section 11B of the Central Excise Act, 1944(1 of 1944) and the amount rejected, if any, shall
not be admissible as input tax credit under this Act.
(8) (a) where in pursuance of an assessment or adjudication proceedings instituted, whether
before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or
penalty becomes recoverable from the person, the same shall, unless recovered under the existing
law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be
admissible as input tax credit under this Act;
(b) where in pursuance of an assessment or adjudication proceedings instituted, whether
before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or
penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under
the said law, notwithstanding anything to the contrary contained in the said law other than the
provisions of sub-section (2) of section 11B of the Central Excise Act, 1944(1 of 1944) and the
amount rejected, if any, shall not be admissible as input tax credit under this Act.
(9) (a) where any return, furnished under the existing law, is revised after the appointed
day and if, pursuant to such revision, any amount is found to be recoverable or any amount of
CENVAT credit is found to be inadmissible, the same shall, unless recovered under the existing
law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be
admissible as input tax credit under this Act;
www.taxguru.in
(b) where any return, furnished under the existing law, is revised after the appointed day
but within the time limit specified for such revision under the existing law and if, pursuant to such
revision, any amount is found to be refundable or CENVAT credit is found to be admissible to any
taxable person, the same shall be refunded to him in cash under the existing law, notwithstanding
anything to the contrary contained in the said law other than the provisions of sub-section (2) of
section 11B of the Central Excise Act, 1944 (1 of 1944) and the amount rejected, if any, shall not
be admissible as input tax credit under this Act.
(10) Save as otherwise provided in this Chapter, the goods or services or both supplied on
or after the appointed day in pursuance of a contract entered into prior to the appointed day shall
be liable to tax under the provisions of this Act.
(11) (a) notwithstanding anything contained in section 12, no tax shall be payable on goods
under this Act to the extent the tax was leviable on the said goods under the Value Added Tax Act
of the State;
(b) notwithstanding anything contained in section 13, no tax shall be payable on services
under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance
Act, 1994(32 of 1994);
(c) where tax was paid on any supply both under the Value Added Tax Act and
underChapter V of the Finance Act, 1994 (32 of 1994), tax shall be leviable under this Act and the
taxable person shall be entitled to take credit of value added tax or service tax paid under the
existing law tothe extent of supplies made after the appointed day and such credit shall be
calculated in such manner as may be prescribed.
(12) Where any goods sent on approval basis, not earlier than six months before the
appointed day, are rejected or not approved by the buyer and returned to the seller on or after the
appointed day, no tax shall be payable thereon if such goods are returned within six months from
the appointed day:
Provided that the said period of six months may, on sufficient cause being shown, be
extended by the Commissioner for a further period not exceeding two months:
Provided further that the tax shall be payable by the person returning the goods if such
goods are liable to tax under this Act, and are returned after a period specified in this sub-section:
Provided also that tax shall be payable by the person who has sent the goods on approval
basis if such goods are liable to tax under this Act, and are not returned within aperiod specified
in this sub-section.
(13) Where a supplier has made any sale of goods in respect of which tax was required to
be deducted at source under any law of a State or Union territory relating to Value Added Tax and
has also issued an invoice for the same before the appointed day, no deduction of tax at source
www.taxguru.in
under section 51 shall be made by the deductor under the said section where payment to the said
supplier is made on or after the appointed day.
Explanation. – For the purposes of this Chapter, the expressions “capital goods”,
“Central Value Added Tax (CENVAT) credit”, “first stage dealer”, “second stage dealer”,
or “manufacture” shall have the same meaning as respectively assigned to them in the
Central Excise Act, 1944 (1 of 1944) or the rules made thereunder.
CHAPTER XXI
MISCELLANEOUS
147[Sec.143. Job work procedure
(1) A registered person (hereafter in this section referred to as the “principal”) may under
intimation and subject to such conditions as may be prescribed, send any inputs or capital goods,
without payment of tax, to a job worker for job work and from there subsequently send to another
job worker and likewise, and shall, –
147.Sec.143 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(a) bring back inputs, after completion of job work or otherwise, or capital goods,
other than moulds and dies, jigs and fixtures, or tools, within one year and three years,
respectively, of their being sent out, to any of his place of business, without payment of
tax;
(b) supply such inputs, after completion of job work or otherwise, or capital goods,
other than moulds and dies, jigs and fixtures, or tools, within one year and three years,
respectively, of their being sent out from the place of business of a job worker on payment
of tax within India, or with or without payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of business of a job
worker in accordance with the provisions of this clause unless the said principal declares the place
of business of the job worker as his additional place of business except in a case—
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be notified by the
Commissioner.
www.taxguru.in
147a [Provided further that the period of one year and three years may, on sufficient cause being
shown, be extended by the Commissioner for a further period not exceeding one year and two
years respectively.]
147a. Inserted the proviso by the CGST (Amendment) Act,2018, ( No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
(2) The responsibility for keeping proper accounts for the inputs or capital goods
shall lie with the principal.
(3) Where the inputs sent for job work are not received back by the principal after
completion of job work or otherwise in accordance with the provisions of clause (a) of sub-
section (1) or are not supplied from the place of business of the job worker in accordance
with the provisions of clause (b) of sub-section (1) within a period of one year of their
being sent out, it shall be deemed that such inputs had been supplied by the principal to the
job worker on the day when the said inputs were sent out.
(4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools,
sent for job work are not received back by the principal in accordance with the provisions
of clause (a) of sub-section (1) or are not supplied from the place of business of the job
worker in accordance with the provisions of clause (b) of sub-section (1) within a period
of three years of their being sent out, it shall be deemed that such capital goods had
beensupplied by the principal to the job worker on the day when the said capital goods
weresent out.
(5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and
scrap generated during the job work may be supplied by the job worker directly from his
place of business on payment of tax, if such job worker is registered, or by the principal, if
the job worker is not registered.
Explanation. – For the purposes of job work, input includes intermediate goods
arising from any treatment or process carried out on the inputs by the principal or the job
worker.
148[Sec.144. Presumption as to documents in certain cases
Where any document –
(i) is produced by any person under this Act or any other law for the time being in
force; or
(ii) has been seized from the custody or control of any person under this Act or any
other law for the time being in force; or
(iii) has been received from any place outside India in the course of any proceedings
under this Act or any other law for the time being in force,
www.taxguru.in
and such document is tendered by the prosecution in evidence against him or any other
person who is tried jointly with him, the court shall—
(a) unless the contrary is proved by such person, presume—
(i) the truth of the contents of such document;
(ii) that the signature and every other part of such document which purports
to be in the handwriting of any particular person or which the court may reasonably
assume to have been signed by, or to be in the handwriting of, any particular person,
is in that person’s handwriting, and in the case of a document executed or attested,
that it was executed or attested by the person by whom it purports to have been so
executed or attested;
(b) admit the document in evidence notwithstanding that it is not duly stamped, if
such document is otherwise admissible in evidence.
149.Sec.144 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
149[Sec.145. Admissibility of micro films, facsimile copies of documents and computer
printouts as documents and as evidence
(1) Notwithstanding anything contained in any other law for the time being in force, —
(a) a micro film of a document or the reproduction of the image or images embodied
in such micro film (whether enlarged or not); or
(b) a facsimile copy of a document; or
(c) a statement contained in a document and included in a printed material produced
by a computer, subject to such conditions as may be prescribed; or
(d) any information stored electronically in any device or media, including any hard
copies made of such information, shall be deemed to be a document for the purposes of
this Act and the rules made thereunder and shall be admissible in any proceedings
thereunder, without further proof or production of the original, as evidence of any contents
of the original or of any fact stated therein of which direct evidence would be admissible.
149.Sec.145 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) In any proceedings under this Act or the rules made thereunder, where it is desired to
give a statement in evidence by virtue of this section, a certificate, -
(a) identifying the document containing the statement and describing the manner
in which it was produced;
(b) giving such particulars of any device involved in the production of that
document as may be appropriate for the purpose of showing that the document was
produced by a computer, shall be evidence of any matter stated in the certificate and for
www.taxguru.in
the purposes of this sub-section it shall be sufficient for a matter to be stated to the best of
the knowledge and belief of the person stating it.
150[Sec.146. Common portal
The Government may, on the recommendations of the Council, notify the Common Goods
and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of
returns, computation and settlement of integrated tax, electronic way bill and for carrying out such
other functions and for such purposes as may be prescribed.
150.Sec. 146 came into force on 22.06.2017, vide Noti. No.1/2017-CT, dt.19.06.2017.
151[Sec.147. Deemed exports
The Government may, on the recommendations of the Council, notify certain supplies of
goods as deemed exports, where goods supplied do not leave India, and payment for such supplies
is received either in Indian rupees or in convertible foreign exchange, if such goods are
manufactured in India.
151. Sec.147 came into force on 01-07-2017, by the N.No.9/2017-CT, dt.28-06-2017.
152[Sec.148. Special procedure for certain process
The Government may, on the recommendations of the Council, and subject to such
conditions and safeguards as may be prescribed, notify certain classes of registered persons, and
the special procedures to be followed by such persons including those with regard to registration,
furnishing of return, payment of tax and administration of such persons.
152.Sec.148 came into force on 01-07-2017, vide N.No.9/2017-CT, dt.28-06-2017.
153[Sec.149. Goods and services tax compliance rating
(1) Every registered person may be assigned a goods and services tax compliance rating
score by the Government based on his record of compliance with the provisions of this Act.
153.Sec.149 came into force on 01-07-2017 vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The goods and services tax compliance rating score may be determined on the basis of
such parameters as may be prescribed.
www.taxguru.in
(3) The goods and services tax compliance rating score may be updated at periodic intervals
and intimated to the registered person and also placed in the public domain in such manner as may
be prescribed.
154[Sec.150. Obligation to furnish information return
(1) Any person, being—
(a) a taxable person; or
(b) a local authority or other public body or association; or
(c) any authority of the State Government responsible for the collection of value
added tax or sales tax or State excise duty or an authority of the Central Government
responsible for the collection of excise duty or customs duty; or
(d) an income tax authority appointed under the provisions of the Income-taxAct,
1961(43 of 1961); or
(e) a banking company within the meaning of clause (a) of section 45A of
theReserve Bank of India Act, 1934(2 of 1934); or
(f) a State Electricity Board or an electricity distribution or transmission licensee
under the Electricity Act, 2003(36 of 2003), or any other entity entrusted with such
functions by the Central Government or the State Government; or
(g) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act,
1908(16 of 1908); or
(h) a Registrar within the meaning of the Companies Act, 2013(18 of 2013); or
(i) the registering authority empowered to register motor vehicles under the Motor
Vehicles Act, 1988 (59 of 1988); or
(j) the Collector referred to in clause (c) of section 3 of the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013(13 of 2013); or
(k) the recognised stock exchange referred to in clause (f) of section 2 of the
Securities Contracts (Regulation) Act, 1956(42 of 1956); or
(l) a depository referred to in clause (e) of sub-section (1) of section 2 of the
Depositories Act, 1996(22 of 1996); or
www.taxguru.in
(m) an officer of the Reserve Bank of India as constituted under section 3 of the
Reserve Bank of India Act, 1934 (2 of 1934); or
(n) the Goods and Services Tax Network, a company registered under the
Companies Act, 2013(18 of 2013); or
(o) a person to whom a Unique Identity Number has been granted undersub-section
(9) of section 25; or
(p) any other person as may be specified, on the recommendations of the Council,by
the Government,
who is responsible for maintaining record of registration or statement of accounts or any periodic
return or document containing details of payment of tax and other details of transaction of goods
or services or both or transactions related to a bank account or consumption of electricity or
transaction of purchase, sale or exchange of goods or property or right or interest in a property
under any law for the time being in force, shall furnish an information return of the same in respect
of such periods, within such time, in such form and manner and to such authority or agency as may
be prescribed. 154.Sec.150 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Where the Commissioner, or an officer authorised by him in this behalf, considers that
the information furnished in the information return is defective, he may intimate the defect to the
person who has furnished such information return and give him an opportunity of rectifying the
defect within a period of thirty days from the date of such intimation or within such further period
which, on an application made in this behalf, the said authority may allow and if the defect is not
rectified within the said period of thirty days or, the further period so allowed, then,
notwithstanding anything contained in any other provisions of this Act, such information return
shall be treated as not furnished and the provisions of this Act shall apply.
(3) Where a person who is required to furnish information return has not furnished the same
within the time specified in sub-section (1) or sub-section (2), the said authority may serve upon
him a notice requiring furnishing of such information return within a period not exceeding ninety
days from the date of service of the notice and such person shall furnish the information return.
155[Sec.151. Power to collect statistics.
(1) The Commissioner may, if he considers that it is necessary so to do, by notification,
direct that statistics may be collected relating to any matter dealt with by or in connection with this
Act.
155.Sec.151 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Upon such notification being issued, the Commissioner, or any person authorized by
him in this behalf, may call upon the concerned persons to furnish such information orreturns, in
such form and manner as may be prescribed, relating to any matter in respect ofwhich statistics is
to be collected.
www.taxguru.in
156[Sec.152. Bar on disclosure of information.
(1) No information of any individual return or part thereof with respect to any matter given
for the purposes of section 150 or section 151 shall, without the previous consent in writing of the
concerned person or his authorised representative, be published in such manner so as to enable
such particulars to be identified as referring to a particular person and no such information shall
be used for the purpose of any proceedings under this Act.
156.Sec.152 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Except for the purposes of prosecution under this Act or any other Act for the time
being in force, no person who is not engaged in the collection of statistics under this Act or
compilation or computerisation thereof for the purposes of this Act, shall be permitted to see or
have access to any information or any individual return referred to in section 151.
(3) Nothing in this section shall apply to the publication of any information relating to a
class of taxable persons or class of transactions, if in the opinion of the Commissioner, it is
desirable in the public interest to publish such information.
157[Sec.153. Taking assistance from an export.
Any officer not below the rank of Assistant Commissioner may, having regard to the nature
and complexity of the case and the interest of revenue, take assistance of any expert at any stage
of scrutiny, inquiry, investigation or any other proceedings before him.
157.Sec.153 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
158[Sec.154. Power to take sample.
The Commissioner or an officer authorised by him may take samples of goods from the
possession of any taxable person, where he considers it necessary, and provide a receipt for any
samples so taken.
158.Sec.154 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
159[Sec.155. Burdon of proof.
Where any person claims that he is eligible for input tax credit under this Act, the burden of
proving such claim shall lie on such person.
159.Sec.155 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
160[Sec.156. Persons deemed to be public servants.
All persons discharging functions under this Act shall be deemed to be public servants
within the meaning of section 21 of the Indian Penal Code (45 of 1860).
160. Sec 156 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
161[Sec.157. Protection of action taken under this Act.
(1) No suit, prosecution or other legal proceedings shall lie against the President, State
President, Members, officers or other employees of the Appellate Tribunal or any other person
www.taxguru.in
authorised by the said Appellate Tribunal for anything which is in good faith done or intended to
be done under this Act or the rules made thereunder.
161.Sec.157 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) No suit, prosecution or other legal proceedings shall lie against any officer appointed
or authorised under this Act for anything which is done or intended to be done in good faith under
this Act or the rules made thereunder.
162[Sec.158. Disclosure of information by a public servant.
(1) All particulars contained in any statement made, return furnished or accounts or
documents produced in accordance with this Act, or in any record of evidence given in the course
of any proceedings under this Act (other than proceedings before a criminal court), or in any record
of any proceedings under this Act shall, save as provided in sub-section (3), not be disclosed.
162.Sec.158 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no
court shall, save as otherwise provided in sub-section (3), require any officer appointed or
authorized under this Act to produce before it or to give evidence before it in respect of particulars
referred to in sub-section (1).
(3) Nothing contained in this section shall apply to the disclosure of, –
(a) any particulars in respect of any statement, return, accounts, documents,
evidence, affidavit or deposition, for the purpose of any prosecution under the Indian Penal
Code (45 of 1860) or the Prevention of Corruption Act, 1988 (49 of 1988), or any other
law for the time being in force; or
(b) any particulars to the Central Government or the State Government or to any
person acting in the implementation of this Act, for the purposes of carrying out the objects
of this Act; or
(c) any particulars when such disclosure is occasioned by the lawful exercise under
this Act of any process for the service of any notice or recovery of any demand; or
(d) any particulars to a civil court in any suit or proceedings, to which the
Government or any authority under this Act is a party, which relates to any matter arising
out of any proceedings under this Act or under any other law for the time being in force
authorising any such authority to exercise any powers thereunder; or
(e) any particulars to any officer appointed for the purpose of audit of tax receiptsor
refunds of the tax imposed by this Act; or
(f) any particulars where such particulars are relevant for the purposes of any
inquiry into the conduct of any officer appointed or authorised under this Act, to any person
or persons appointed as an inquiry officer under any law for the time being inforce; or
www.taxguru.in
(g) any such particulars to an officer of the Central Government or of any State
Government, as may be necessary for the purpose of enabling that Government to levy or
realise any tax or duty; or
(h) any particulars when such disclosure is occasioned by the lawful exercise by a
public servant or any other statutory authority, of his or its powers under any law for the
time being in force; or
(i) any particulars relevant to any inquiry into a charge of misconduct inconnection
with any proceedings under this Act against a practising advocate, a tax practitioner, a
practising cost accountant, a practising chartered accountant, a practicing company
secretary to the authority empowered to take disciplinary action against the members
practising the profession of a legal practitioner, a cost accountant, a chartered accountant
or a company secretary, as the case may be; or
(j) any particulars to any agency appointed for the purposes of data entry on any
automated system or for the purpose of operating, upgrading or maintaining any automated
system where such agency is contractually bound not to use or disclose such particulars
except for the aforesaid purposes; or
(k) any particulars to an officer of the Government as may be necessary for the
purposes of any other law for the time being in force; or
(l) any information relating to any class of taxable persons or class of transactions
for publication, if, in the opinion of the Commissioner, it is desirable in the public interest,
to publish such information.
163[Sec.159. Publication of information in respect of persons in certain cases.
(1) If the Commissioner, or any other officer authorised by him in this behalf, is of the
opinion that it is necessary or expedient in the public interest to publish the name of any person
and any other particulars relating to any proceedings or prosecution under this Act in respect of
such person, it may cause to be published such name and particulars in such manner as it thinks
fit.
163.Sec.159 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) No publication under this section shall be made in relation to any penalty
imposed under this Act until the time for presenting an appeal to the Appellate Authority
under section 107 has expired without an appeal having been presented or the appeal, if
presented, has been disposed of.
Explanation.––In the case of firm, company or other association of persons, the
names of the partners of the firm, directors, managing agents, secretaries and treasurers or
managers of the company, or the members of the association, as the case may be, may also
be published if, in the opinion of the Commissioner, or any other officer authorised by him
in this behalf, circumstances of the case justify it.
www.taxguru.in
164[Sec.160. Assessment proceedings etc., not to be invalid on certain grounds.
(1) No assessment, re-assessment, adjudication, review, revision, appeal, rectification,
notice, summons or other proceedings done, accepted, made, issued, initiated, or purported to have
been done, accepted, made, issued, initiated in pursuance of any of the provisions of this Act shall
be invalid or deemed to be invalid merely by reason of anymistake, defect or omission therein, if
such assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice,
summons or other proceedings are in substance and effect in conformity with or according to the
intents, purposes and requirements of this Act or any existing law. 164.Sec.160 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The service of any notice, order or communication shall not be called in question, if the
notice, order or communication, as the case may be, has already been acted upon by the person to
whom it is issued or where such service has not been called in question at or in the earlier
proceedings commenced, continued or finalised pursuant to such notice, order or communication.
165[Sec.161. Rectification of errors apparent on the face of record.
Without prejudice to the provisions of section 160, and notwithstanding anything contained
in any other provisions of this Act, any authority, who has passed or issued any decision or order
or notice or certificate or any other document, may rectify any error which is apparent on the face
of record in such decision or order or notice or certificate or any other document, either on its own
motion or where such error is brought to its notice by any officer appointed under this Act or an
officer appointed under the State Goods and Services Tax Act or an officer appointed under the
Union Territory Goods and Services Tax Act or by the affected person within a period of three
months from the date of issue of such decision or order or notice or certificate or any other
document, as the case may be:
165.Sec.161 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
Provided that no such rectification shall be done after a period of six months from the date
of issue of such decision or order or notice or certificate or any other document:
Provided further that the said period of six months shall not apply in such cases where the
rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any
accidental slip or omission:
Provided also that where such rectification adversely affects any person, the principles of
natural justice shall be followed by the authority carrying out such rectification.
166[Sec.162. Bar on jurisdiction of civil courts.
Save as provided in sections 117 and 118, no civil court shall have jurisdiction to deal with
or decide any question arising from or relating to anything done or purported to be done under this
Act.
166.Sec.162 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
167[Sec.163. Levy of fee.
www.taxguru.in
Wherever a copy of any order or document is to be provided to any person on an application
made by him for that purpose, there shall be paid such fee as may be prescribed.
167.Sec.163 came into force on 01-07-2017, by N.No.9/2017-CT, dt.28-06-2017.
168[Sec.164. Power of Government to make rules.
(1) The Government may, on the recommendations of the Council, by notification, make
rules for carrying out the provisions of this Act.
168.Sec.164.came into force on 22-06-2017, by N.No.1/2017-CT,dt.19-06-2017.
(2) Without prejudice to the generality of the provisions of sub-section (1), theGovernment
may make rules for all or any of the matters which by this Act are required to be,or may be,
prescribed or in respect of which provisions are to be or may be made by rules.
(3) The power to make rules conferred by this section shall include the power to
giveretrospective effect to the rules or any of them from a date not earlier than the date on whichthe
provisions of this Act come into force.
(4) Any rules made under sub-section (1) or sub-section (2) may provide that
acontravention thereof shall be liable to a penalty not exceeding ten thousand rupees.
169[Sec.165. Power to make regulations
The Board may, by notification, make regulations consistent with this Act and the rules
made thereunder to carry out the provisions of this Act.
169.Sec.165 came into force on 01-07-2018, vide Noti. No.9/2017-CT, dt.28-06-2017.
170[Sec.166. Laying of rules, regulations and notifications.
Every rule made by the Government, every regulation made by the Board and every
notification issued by the Government under this Act, shall be laid, as soon as may be after it is
made or issued, before each House of Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more successive sessions, and if, before
the expiry of the session immediately following the session or the successive sessions aforesaid,
both Houses agree in making any modification in the rule or regulation or in the notification, as
the case may be, or both Houses agree that the rule or regulation or the notification should not be
made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in
such modified form or be of no effect, as the case may be; so, however, that any such modification
or annulment shall be without prejudice to the validity of anything previously done under that rule
or regulation or notification, as the case may be.
170.Sec.166 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-09-2017.
171[Sec.167. Delegation of powers.
The Commissioner may, by notification, direct that subject to such conditions, if any, as
may be specified in the notification, any power exercisable by any authority or officer under this
Act may be exercisable also by another authority or officer as may be specified in such notification.
171.Sec.167 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
www.taxguru.in
172[Sec.168. Power to issue instructions or directions.
(1) The Board may, if it considers it necessary or expedient so to do for thepurpose of
uniformity in the implementation of this Act, issue such orders, instructions or directions to the
central tax officers as it may deem fit, and thereupon all such officers and all other persons
employed in the implementation of this Act shall observe and follow such orders, instructions or
directions.
172.Sec.168 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
(2) The Commissioner specified in clause (91) of section 2, sub-section (3) of section 5,
clause (b) of sub-section (9) of section 25, sub-sections (3) and (4) of section 35, sub-section (1)
of section 37, sub-section (2) of section 38, sub-section (6) of section 39, sub-section (5) of section
66, sub-section (1) of section 143, sub-section (1) of section 151, clause (l) of sub-section (3) of
section 158 and section 167 shall mean a Commissioner or Joint Secretary posted in the Board and
such Commissioner or Joint Secretary shall exercise the powers specified in the said sections with
the approval of the Board.
173[Sec.169. Service of notice in certain circumstances.
(1) Any decision, order, summons, notice or other communication under this Act or the
rules made thereunder shall be served by any one of the following methods, namely: —
(a) by giving or tendering it directly or by a messenger including a courier to the
addressee or the taxable person or to his manager or authorised representative or an
advocate or a tax practitioner holding authority to appear in the proceedings onbehalf of
the taxable person or to a person regularly employed by him in connection with the
business, or to any adult member of family residing with the taxable person;
or
(b) by registered post or speed post or courier with acknowledgement due, to the
person for whom it is intended or his authorised representative, if any, at his
last known place of business or residence; or
(c) by sending a communication to his e-mail address provided at the time of
registration or as amended from time to time; or
(d) by making it available on the common portal; or
(e) by publication in a newspaper circulating in the locality in which the taxable
person or the person to whom it is issued is last known to have resided, carried on business
or personally worked for gain; or
(f) if none of the modes aforesaid is practicable, by affixing it in some conspicuous
place at his last known place of business or residence and if such mode is not practicable
for any reason, then by affixing a copy thereof on the notice board of the office of the
concerned officer or authority who or which passed such decision or order or issued such
summons or notice. 173.Sec.169 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
www.taxguru.in
(2) Every decision, order, summons, notice or any communication shall be deemed tohave
been served on the date on which it is tendered or published or a copy thereof is affixedin the
manner provided in sub-section (1).
(3) When such decision, order, summons, notice or any communication is sent by
registered post or speed post, it shall be deemed to have been received by the addressee at the
expiry of the period normally taken by such post in transit unless the contrary is proved.
174[Sec.170. Rounding off of tax.
The amount of tax, interest, penalty, fine or any other sum payable, and the amount of
refund or any other sum due, under the provisions of this Act shall be rounded off to the nearest
rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then,
if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than
fifty paise it shall be ignored.
174.Sec.170 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
175[Sec.171. Anti Profiteering measure.
(1) Any reduction in rate of tax on any supply of goods or services or the benefit of
input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.
175.Sec.171 came into force on 01-07-2017, vide Noti. No.9/2017-CT,dt.28-06-2017.
(2) The Central Government may, on recommendations of the Council, by
notification, constitute an Authority, or empower an existing Authority constituted under
any law for the time being in force, to examine whether input tax credits availed by any
registered person or the reduction in the tax rate have actually resulted in a commensurate
reduction in the price of the goods or services or both supplied by him.
(3) The Authority referred to in sub-section (2) shall exercise such powers and
discharge such functions as may be prescribed.
176[Sec.172.Removal of difficulties.
(1) If any difficulty arises in giving effect to any provisions of this Act, the Government may,
on the recommendations of the Council, by a general or a special order published in the Official
Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or
regulations made thereunder, as may be necessary or expedient for the purpose of removing the
said difficulty:
Provided that no such order shall be made after the expiry of a period of three years from
the date of commencement of this Act. 176.Sec.172 came into for on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) Every order made under this section shall be laid, as soon as may be, after it is made, before
each House of Parliament.
www.taxguru.in
177[Sec.173. Amendment of Act 32 of 1994.
Save as otherwise provided in this Act, Chapter V of the Finance Act, 1994 shall be omitted.
177.Sec.173 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
178[Sec.174. Repeal and saving.
(1) Save as otherwise provided in this Act, on and from the date of commencement of this
Act, the Central Excise Act, 1944 (1 of 1944) (except as respects goods included in entry 84 ofthe
Union List of the Seventh Schedule to the Constitution), the Medicinal and Toilet Preparations
(Excise Duties) Act, 1955 (16 of 1955), the Additional Duties of Excise (Goods of Special
Importance) Act, 1957 (58 of 1957), the Additional Duties of Excise (Textiles and Textile
Articles)Act, 1978 (40 of 1978), and the Central Excise Tariff Act, 1985 (5 of 1986) (hereafter
referred to as the repealed Acts) are hereby repealed.
178.Sec.174 came into force on 01-07-2017, vide Noti. No.9/2017-CT, dt.28-06-2017.
(2) The repeal of the said Acts and the amendment of the Finance Act, 1994 ( 32 of 1994)
(hereafter referred to as “such amendment” or “amended Act”, as the case may be) to the extent
mentioned in the sub-section (1) or section 173 shall not—
(a) revive anything not in force or existing at the time of such amendment or repeal;
or
(b) affect the previous operation of the amended Act or repealed Acts and orders or
anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation, or liability acquired, accrued or incurred
under the amended Act or repealed Acts or orders under such repealed or amended Acts:
Provided that any tax exemption granted as an incentive against investment through a
notification shall not continue as privilege if the said notification is rescinded on or after the
appointed day; or
(d) affect any duty, tax, surcharge, fine, penalty, interest as are due or may become
due or any forfeiture or punishment incurred or inflicted in respect of any offence or
violation committed against the provisions of the amended Act or repealed Acts; or
(e) affect any investigation, inquiry, verification (including scrutiny and audit),
assessment proceedings, adjudication and any other legal proceedings or recovery of
arrears or remedy in respect of any such duty, tax, surcharge, penalty, fine, interest, right,
privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such
investigation, inquiry, verification (including scrutiny and audit), assessment proceedings,
adjudication and other legal proceedings or recovery of arrears or remedy may be
instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest,
forfeiture or punishment may be levied or imposed as if these Acts had not been so
amended or repealed;
www.taxguru.in
(f) affect any proceedings including that relating to an appeal, review or reference,
instituted before on, or after the appointed day under the said amended Act or repealed
Acts and such proceedings shall be continued under the said amended Act or repealed Acts
as if this Act had not come into force and the said Acts had not been amended or repealed.
(3) The mention of the particular matters referred to in sub-sections (1) and (2) shall not be
held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897
(10 of 1897) with regard to the effect of repeal.
www.taxguru.in
SCHEDULE - I [See section 7]
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION
1. Permanent transfer or disposal of business assets where input tax credit has been availed on such
assets.
2. Supply of goods or services or both between related persons or between distinct persons as
specified in section 25, when made in the course or furtherance of business:
Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an
employer to an employee shall not be treated as supply of goods or services or both.
3. Supply of goods—
(a) by a principal to his agent where the agent undertakes to supply such goods on
behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods
on behalf of the principal.
4.Import of services by a 178a[person] from a related person or from any of his other
establishments outside India, in the course or furtherance of business.
178a. Subs for the words “taxable person” by the (Amendment) CGST Act, 2018, (No.31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
www.taxguru.in
SCHEDULE II
[See section 7]
ACTIVITIES 178b[OR TRANSACTIONS]TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES
1. Transfer
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods without the transfer of title
thereof, is a supply of services;
(c) any transfer of title in goods under an agreement which stipulates that property in goods
shall pass at a future date upon payment of full consideration as agreed, is a supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land is a supply of services;
(b) any lease or letting out of the building including a commercial, industrial or residential
complex for business or commerce, either wholly or partly, is a supply of services.
3. Treatment or process
Any treatment or process which is applied to another person's goods is a supply of services.
4. Transfer of business assets
(a) where goods forming part of the assets of a business are transferred or disposed of by
or under the directions of the person carrying on the business so as no longer to form part of those
assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the
person;
(b) where, by or under the direction of a person carrying on a business, goods held or used
for the purposes of the business are put to any private use or are used, or made available to any
person for use, for any purpose other than a purpose of the business, whether or not for a
consideration, the usage or making available of such goods is a supply of services;
(c) where any person ceases to be a taxable person, any goods forming part of the assets of
any business carried on by him shall be deemed to be supplied by him in the course or furtherance
of his business immediately before he ceases to be a taxable person, unless—
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is deemed to be a
taxable person.
www.taxguru.in
5. Supply of services
The following shall be treated as supply of services, namely: -
(a) renting of immovable property;
(b) construction of a complex, building, civil structure or a part thereof, including a
complex or building intended for sale to a buyer, wholly or partly, except where the entire
consideration has been received after issuance of completion certificate, where required, by the
competent authority or after its first occupation, whichever is earlier.
Explanation. - For the purposes of this clause —
(1) the expression "competent authority" means the Government or any authority
authorised to issue completion certificate under any law for the time being in force and in
case of non-requirement of such certificate from such authority, from any of the following,
namely: -
(i) an architect registered with the Council of Architecture constituted under the
Architects Act, 1972; or (20 of 1972)
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or village
or development or planning authority;
(2) the expression "construction" includes additions, alterations, replacements or
remodelling of any existing civil structure;
(c) temporary transfer or permitting the use or enjoyment of any intellectual
property right;
(d) development, design, programming, customisation, adaptation, upgradation,
enhancement, implementation of information technology software;
(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a
situation, or to do an act; and
(f) transfer of the right to use any goods for any purpose (whether or not for
aspecified period) for cash, deferred payment or other valuable consideration.
www.taxguru.in
6. Composite supply
The following composite supplies shall be treated as a supply of services, namely: —
(a) works contract as defined in clause (119) of section 2; and
(b) supply, by way of or as part of any service or in any other manner whatsoever,
of goods, being food or any other article for human consumption or any drink (other than
alcoholic liquor for human consumption), where such supply or service is for cash, deferred
payment or other valuable consideration.
7. Supply of Goods
The following shall be treated as supply of goods, namely: —
Supply of goods by any unincorporated association or body of persons to a member thereof
for cash, deferred payment or other valuable consideration. 178b. Inserted for the words by the CGST (Amendment) Act, 2018, ( No.31 of 2018 ), dt.30.08.2018.w.e.f. 01-07-2017
www.taxguru.in
SCHEDULE III
[See section 7]
ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS
NOR A SUPPLY OF SERVICES
1. Services by an employee to the employer in the course of or in relation to his
employment.
2. Services by any court or Tribunal established under any law for the time being in force.
3. (a) the functions performed by the Members of Parliament, Members of State
Legislature, Members of Panchayats, Members of Municipalities and Members of other local
authorities;
(b) the duties performed by any person who holds any post in pursuance of the provisions
of the Constitution in that capacity; or
(c) the duties performed by any person as a Chairperson or a Member or a Director in a
body established by the Central Government or a State Government or local authority and who is
not deemed as an employee before the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of the
deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than lottery, betting and gambling.
178c[7.Supply of goods from a place in the non-taxable territory to another place in the
non-taxable territory without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of documents
of title to the goods, after the goods have been dispatched from the port of origin located
outside India but before clearance for home consumption.]
178c.Inserted the paragraphs by the CGST (Amendment) Act,2018, ( No. 31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No.
02/2019- ( CT ) , Dt. 29-01-2019
178d [ Explanation. - 1] For the purposes of paragraph 2, the term "court" includes DistrictCourt,
High Court and Supreme Court.
178e [Explanation 2.- For the purposes of paragraph 8, the expression “warehoused goods” shall
have the same meaning as assigned to it in the Customs Act, 1962.]
www.taxguru.in
178d. Explanation is numbered as Explanation 1 by the CGST (Amendment) Act, 2018, ( No. 31 of 2018), Dt.30.08.2018. w.e.f. 01-02-
2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
178e. Inserted the Explanation2 ….. by the CGST (Amendment) Act, 2018, ( No. 31 of 2018), Dt.30.08.2018. w.e.f. 01-02-2019 by N.No. 02/2019- ( CT ) , Dt. 29-01-2019
————
www.taxguru.in
Related Documents
